One of the things Marti and I have started doing the past few years is learning about finances. This all started back in D.C., when we were introduced to the concept of investing money (we were also introduced to the concept of having money period, but that’s another story). We saved and saved, and I read a lot of investment brochures. Then we promptly had kids and it all went out the window.
Nevertheless, we have continued to read and discuss various investment strategies, and even put a tentative toe into the swirling waters of stocks. We’ve looked into real estate and discussed the meaning of “equity fund.”
Marti and I agree on most things, but we have a fundamental disagreement about economics. Now, I think that my theory is the best, primarily because we usually make money on it. This is primarily because I actually invest the money, rather than thinking about investing it.
But in essence, I am a psychological investor. I look at people’s attitudes and try to guess what they’ll do. For example, if a stock crashes, it gets my attention. If it splits, I find that a good time to buy — people’s attitudes are positive, more people are selling, etc. Marti disagrees. For him, it is math. Two stocks at $25 are the same as one at $50. Sure, that’s true enough. But for me, money is an idea; math is just a convenient way to tabulate it. And, it turns out that Alan Greenspan agrees with me.
Alan. Greenspan. Agrees.
While I don’t like to dance around, shouting, “I WIN!!! I WIN!!!” (okay, I sort of do) I would like to feature the video that supports me:
