The Psychology of Money - An Investment Manager\'s Guide to Beating the Market

(Grace) #1
Well, maybe. My guess is that the freaky-looking guys with pony-
tails, tattoos, and various pierced body parts (like Stuart, the
Ameritrade online trader on TV) will be the major innovators. You
won’t dig up too many photos of Bill Gates wearing a pin-striped
suit and suspenders.
So, how does one stretch one’s creative ability? First off, the
exercises mentioned in Chapter 5 will help sensing types stretch
into their big “C.”
Perhaps a more practical approach is to diversify one’s own
personality talent in the same way that fund managers diversify
their portfolios. Diversification is known to be a powerful positive
force in investing. Simply put, diversification means avoiding the
mistake of putting all your eggs in one basket. One relatively simple
solution to more creativity is to embrace diversity. Ameritrade’s
TV ad with freaky Stuart and his older, conservative boss is a perfect
example: the conservative “lion” teaming up with the wild “jester.”
There is already evidence in the markets that diversity works. The
Fortune Diversity Fund, which includes companies that have the
highest marks for diversity, is an example. Their stocks did better
than the S&P 500 Index. Partly this is because diversity adds more
firepower to the quality of thinking. This kind of diversity can be
consciously added to investment clubs or money management teams.
Having discussed the nature of collaboration in the investment
arena, and looked at some suggestions for improvement, I want to
shift our focus to personality temperaments. How do they affect
the markets? How do they affect client service?

Case History 95

08-13 ware 95 1/19/01, 1:11 PM

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