Posted by on Apr 20, 2019 in Articles & Advice, Blog, Columns, Featured |

Image Credit: Alex Nabaum


By Jason Zweig  |  April 19, 2019 12:00 p.m. ET


Bit by bit, the myth of the “dumb money” is dying.

For decades, Wall Street has derided individual investors as ill-informed, fickle and hapless. Instead of buying and holding, or buying low and selling high, the “dumb money” blindly chases performance, buying high and selling low. The perennial message from Wall Street: The only way the dumb money can get smart is by taking our advice—at a reasonable fee, of course.

That was always nonsense, but new evidence of its foolishness is piling up fast. A study of clients of Vanguard Group, the giant asset manager, is the latest look at how individual investors make decisions. It shows them, overall, to be patient and prudent. It also offers a hint as to how investors and their financial advisers can get a little smarter still.


To read the rest of the column:


For further reading:


Benjamin Graham, The Intelligent Investor

Jason Zweig, The Devil’s Financial Dictionary

Jason Zweig, Your Money and Your Brain

Jason Zweig, The Little Book of Safe Money


Articles and other resources:

Wall Street Has It Wrong. You’re a Smart Investor.

On Jack Bogle (1929-2019)

Just How Dumb Are Investors?

Sometimes the ‘Smart Money’ Is Dumb Too

I Don’t Know, and I Don’t Care

Remembering “Adam Smith”