sâmbătă, 29 mai 2010

Behavioural finance in the 60s

Leisure reading in between exams.
We are all at a wonderful party, and by the rules of the game we know that at some point in time the Black Horsemen will burst through the great terrace doors to cut down the revelers; those who leave early may be saved, but the music and wines are so seductive that we do not want to leave, but we ask, what time is it? what time is it? Only none of the clocks have any hands.
[...] Which brings us back to what The Money Game is about - image and reality and identity and anxiety and money, in that order. If you don't know who you are, this is an expensive place to find out, the book says. (!) That had to do with people who want to lose, people who want to play out life scripts in the marketplace, old tapes in their heads.
From the preface to The Money Game by Adam Smith (only a pseudonym), 1967.

Later edit. Another delightful little passage:
But if you have your money managed for you, then you are not really interested, or at least the Game element - with that propensity to be paid for - does not attract you. I have known a lot of investors who came to the market to make money, and they told themselves that what they wanted was the money: security, a trip around the world, a new sloop, a country estate, an art collection, a Caribbean house for cold winters. And they succeeded. So they sat on the dock of the Caribbean home, chatting with their art dealers and gazing fondly at the new sloop, and after a while it was a bit flat. Something was missing. If you are a successful Game player, it can be a fascinating, consuming, totally absorbing experience, in fact it has to be. If it is not totally absorbing, you are not likely to be among the most successful, because you are competing with those who do find it absorbing. (!)

Niciun comentariu: