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Morons who don’t know what they’re talking about

Ramit Sethi

I hardly ever post on weekends, but I was reading this forum thread today and I almost vomited in my own mouth while struggling not to throw my computer out the window.

I read a forum thread, “What should I invest in?”

bad-advice.jpg

Photo by smoo

LISTEN VERY CLOSELY PLEASE. JUST BECAUSE SOME PEOPLE ON THE INTERNET TOLD YOU TO INVEST IN A “HOT” SECTOR LIKE ENERGY DOES NOT MEAN IT’S RIGHT. IT MEANS THEY WATCH TOO MUCH TV.

JUST BECAUSE PEOPLE TELL YOU TO HOLD YOUR MONEY IN CASH DOES NOT MEAN THEY’RE RIGHT. IT MEANS THEY ARE SCARED AND IRRATIONAL AND DON’T UNDERSTAND HOW INVESTING, COMPOUND GROWTH, AND DIVERSIFICATION WORK OVER THE LONG TERM.

ALSO, HAVE THESE PEOPLE EVER READ A BOOK? HAVE THEY EVER HEARD OF “ASSET ALLOCATION” (WHICH IS RESPONSIBLE FOR 90%+ OF YOUR RETURNS)?

OF COURSE NOT! IT’S EASIER TO JUST POST WHATEVER SEEMS TO BE A “GREAT INVESTMENT OPPORTUNITY.” KILL ME NOW.

I’m saving that forum thread in my bookmarks of stupid things.

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30 Comments

 
  1. Brian

    umm, call me crazy, but beyond the overuse of the shift key, isnt his commentary just about spot on?

    What am I missing?

  2. Carlin

    The link to the thread is what you need to read. The ALL CAPS is Ramit going off about it. That thread is pretty bad. I’m always found of telling people when they come to me with some great idea they heard, that if it was such a great way to make money, then why the hell did someone else tell you about it? Also, if it was so foolproof, why isn’t that other person sitting on their private island warming themselves by the fire they made out of $100 bills. If someone else had THE ANSWER to all of your money problems, then they wouldn’t be talking to you about it. They’d be making tons of money themselves.

  3. Brian

    oh. I guess all caps makes even the most eloquent orator appear to be a F-ing moron.

    I expected more from Ramit, I guess.

  4. chris

    The last couple of posts on iwillteachyou were not really worth reading and this one is below any standard. Ramit, was your account hacked and abused by some childish chap? IMHO, if you’re busy it’s better not to make a post than writing this crap. unsubscribe.

  5. joshp

    I think what people frequently forget about is you really have to put advice in context. For instance, my guess is 99% of the people giving investment “advice” on that forum post either A) haven’t really ever done any investing or B) are broke.

    Don’t take investment or money advice from broke people. It’s stupid and you, by default, become stupid for taking their advice.

  6. david

    Actually, listening to people who have made mistakes is an excellent strategy for learning. Most wisdom only comes through suffering, but if you’re clever, you can learn from the suffering of others as well.

  7. Amy

    And I thought God, Gold, Guns, Girls and Green was a great investment strategy!?!?!
    I can see why you had half a nervous breakdown there…….;>

  8. Blake

    ” And I thought God, Gold, Guns, Girls and Green was a great investment strategy!?!?!

    I can see why you had half a nervous breakdown there…….;>”

    That actually might be hinting at the best investment strategy at the rate we are headed, although I would replace ‘girls’ with survival skills.

  9. Joe

    Personally, I love people like those that seem to post on that forum… it’s idiots like that which create opportunities for smart investors to profit from their excessive greed, fear, panic and stupidity. 🙂

  10. Matt

    The original poster did seem to have some knowledge even if he wasn’t sure where to invest his money, he should have taken the money to a good financial planner to determine what the best course of action was for him. I guess he still can but it makes sense that he would have known this.

    Granted he did ask for advice which can be considered a call for opinions but I wouldn’t offer any form of financial advice to people I didn’t personally know. Even then I would be very hesitant – unless you’re a professional in the industry its safest to stay back.

    Joe – I couldn’t agree more; I wish I had been a little smarter in my youth, with the markets in turmoil a little bit of research can find you some great investments. Make money off people being stupid!

  11. Jonathan B.

    Hehe. I have a coworker who actually is making a lot of money with energy stocks (I go to his cubicle and watch him trade on occasion) but yeah, even he feels it’s “gambling” (in his words).

  12. ekrabs

    So, I have this great hedge fund that I think he should totally put all of his money into…! EKRABX. The hottest thing since crushed ice!

  13. Colin

    Ramit, your site has deteriorated badly in recent months. Critiquing the posts on random internet message boards – is this really the best you can do? Word to the wise: If you really care about this site, the key is content. Your content of late has been atrocious.

  14. Ramit Sethi

    Colin, thanks for the feedback. I don’t really think it’s deteriorated but I appreciate your comment and will try to write something you’d be interested in. Btw, if you’d like to write a guest post, please send me an email.

  15. Sheehan

    The internet is full of wanna-be 10 baggers posting on forums about the latest hot stock. I think its great, Ramit, that you pointed out some of the miseducation (did I just make up that word?) thats apparent on the internet.

  16. Tertius

    In Ramit’s defense.

    We all know that he has zero tolerance for people who either don’t manage their money or give bad advice.

    That’s what this site is about.

    If you didn’t notice, he’s pointing out an example of why people are in the place they are (Asking for investment advice on a forum!?) financially.

    This post makes sense to me within the bigger picture of what this blog is about.

  17. Daniel

    Re: Ramit’s comment to Colin

    As a reader, I think guest posts are a great idea. Has there been any?

  18. Murray Trillionaire

    Put your money into PRINCESS DIANA COMMEMORATIVE PLATES. Value is sure to go up and what great fun to use. I’m bullish on all Princess Anne utensils.

  19. Andrea

    I would agree that posting quality has deteriorated in the past few months, with the Money Diary -maybe- as an exception. If you’ve said all you want to say, then you might give your readers a heads up before turning this blog into a guest posting forum.
    Do keep the archives going for those who have yet to read through them!

  20. Rick Francis

    I loved the “God, Gold, Guns, Girls and Green” strategy, I was wondering if that would require starting my own religion? Do you think my wife would have problems with the girls?

    Seriously though 10 years is a tough investment horizon- it’s too short for stocks to be a sure winner but too long to forgo them. Also, it sounds like it has to be in a taxable account too. That knocks out a lot of funds due to tax inefficiency. I would look for a target retirement fund that was tax efficient. If there wasn’t one you could make your own with % bonds from a target retirement account and use tax efficient funds like a total stock market index and a municipal bond fund.

    Ramit, the content has been very thin in recent months- I’m disappointed because I enjoy your writing style. I think you need to make a decision soon- do you really want to keep blogging? If so you need to put in the time and generate quality content, if not wrap things up and make a good archive. Letting the site fade away isn’t a very good choice.

    -Rick Francis

  21. Ramit Sethi

    Guys, I’m finishing up a multi-hundred page I Will Teach You To Be Rich book, which has taken two years to write. Sorry if the blogging has been light, but I’ve made a conscious decision to focus on finishing this book so I can get back to writing stuff I love on this blog. Thanks for being patient — I really think you’ll like the book.

  22. Carlin

    You could write a phenomenal post every hour and someone would complain that you posted too much and they couldn’t keep up with reading all of them. Keep doing what you’re doing. It’s obviously worked out pretty well for you so far. I know that nobody is beating down my door asking me to write a book based on my blog, so I don’t think I’m really in a position to tell you that your blog sucks based on my vast blog experience.

  23. Wealth for investors

    I got creamed in the market today! Maybe i need the advice lol
    hahah
    well you should see on indvidual stock fourm posts.
    I heard one on visa talking about how visa stock is going bankrupt
    jesus….. it’s the internet anyway pepole can write whatever correct?
    funny post

  24. rmark

    I think that is actually about 90% of the variation of returns

    Determinants Of Portfolio Performance
    Financial Analysts Journal
    Gary P. Brinson, L. Randolph Hood, and Gilbert L. Beebower
    July/August 1986, Vol. 42, No. 4: 39-44

  25. Andrea

    Ramit, I was unaware that you were writing another book. If that was your conscious decision to focus your time elsewhere, then I am glad to know there is a reason for the change in the blog.
    As of now I have no intention of buying the book, but I am open to persuasion if the content is applicable to myself.

  26. Kjo

    The blog made the book happen…doesn’t it deserve more attention?!

  27. Weekly Dividend Investing Roundup - September 20, 2008 » The Dividend Guy Blog

    […] Morons are morons – simple […]

  28. InvestorToon

    Elmer: Should I shoot him now or wait ’til I get home?

    Daffy: Shoot him now! SHOOT HIM NOW!

  29. kevin

    i like these posts. they are simple, and get the point across in a funny manner that shows some emotion.

    i don’t understand the “i’m entitled to some good shit since i subscribed to your posts” attitude of everyone who is complaining. have some faith in ramit.

  30. State

    Hey everyone, this is the guy that posted that question on patrick.net. You will be happy to know that I have not invested all my money in gold bullion and solar panels, I was just curious to hear the opinions of the posters in that forum.

    In patrick.net’s defense, I’ve used it to save 3 friends of mine from making terrible home purchases.