Why Intellectual Performance Chasing Is Just As Dangerous To Your Wealth

I regularly read and share number of opinions from a wide variety of sources on twitter and in my weekend email newsletter. I also regularly receive replies to this effect: ‘Why would you even read so-and-so when he’s been wrong for so long?’ or ‘What do you think of so-and-so? He’s been so right for so long.’
I understand where this comes from but investors, more than anyone, should understand that ‘past performance is no guarantee.’ In fact, I believe that this sort of bias may be one of the most dangerous mistakes investors can make.
It’s called ‘genetic fallacy’ and it simply means accepting or rejecting an idea solely because of its source rather than on its own merits. And here’s why it’s so dangerous.
Everyone remembers the story of the ‘Boy Who Cried Wolf.’ Using this sort of thinking, you ignore or dismiss the boy even when the wolf is standing right in front of you simply because he has been wrong for the past few days.

This post was published at Wall Street Examiner by Jesse Felder ‘ August 24, 2016.