Live and Invest like an eternal optimist
At Buzzonomics, we do not try to forecast the short-term nor do we fear the long term.
We leave these futile exercises to people whose job is either to talk with no consequences to their words or worse, to egocentric ones who truly believe they have the foresight to be right. At Buzzonomics, we are eternal optimists.
We believe it is better being somewhat right over the long term rather than completely wrong in the short term. We believe human ingenuity and instinct to survive will trump calamity and misfortune.
After all, humans have cured diseases, outlived the dark ages, reached the stars and understood their own DNA. At Buzzonomics, we follow no leader blindly, specially if he is in the public spotlight. We prefer introverts thinkers to extrovert speakers and prefer to learn by our own intellectual curiosity rather than through other’s personal experiences. We prefer boring scientific proofs to beautifully written scriptures. We are for democracy and against statism. For democracy yields ingenuity whilst statism erodes ambition.
Even though bad choices are sometimes made and horrendous consequences are felt. Even though some will always follow the leader whose charisma is no match to his values. Even though some reject evolution and climate change. Even though ego always begets trouble. At Buzzonomics, we are optimists and will stay optimists until the earth gets flat.
“We are going to die, and that makes us the lucky ones. Most people are never going to die because they are never going to be born. The potential people who could have been here in my place but who will in fact never see the light of day outnumber the sand grains of Arabia. Certainly those unborn ghosts include greater poets than Keats, scientists greater than Newton. We know this because the set of possible people allowed by our DNA so massively exceeds the set of actual people. In the teeth of these stupefying odds it is you and I, in our ordinariness, that are here.” Richard Dawkins
So what does all this have to do with economics and investment you ask?
Easy! No pessimist has ever prospered over the long term!
Beware: Short-term luck/success is not prosperity! It is but a glitch in history.
When we say we are optimists, we mean we also invest like optimists. When others are frightful we get excited and when others are agitated we are careful.
We understand that nothing lasts forever. For example: Should there be fear of a world war and prices plummet, we would be more than grateful to buy at low prices and wait, for we believe in humanity and survival. Furthermore, we do not try to forecast short-term fluctuations in prices, for we know we will be wrong. We make sure we understand the mechanics of supply and demand and the long-term prospect of the asset we are buying. Therefore, being an optimist, focusing on the long term and not thinking that the end is nigh, makes us buy (with a smile) when others are selling.
At Buzzonomics, we smile and we are eternal optimists and so should you!
Friends, I fare you well with one of the greatest speeches ever given. And guess what? It was given by a comedian!
PS: Here are some failed short-term predictions from the best economic minds:
Paul Farrell: Beware of Predictions, Optimism Bias