Kal Kotecha PhD
Any ordinary person using nothing more than common sense and what they already know or can easily obtain, can learn to make profitable decisions if only they learn to ignore the experts, the gurus and other fools.—Bob Moriarty
Bob Moriarity of www.321gold.com, an icon in the resource arena has written a fantastic, easy to read and practical book called Nobody Knows Anything that focuses on why it is more important for investors to understand human behavior than it is to know about a specific investment. With all bubbles, eventually the lemming investors will want to go over the cliff together because everyone will be doing it. Nobody Knows Anything will prepare you to see the opportunity when the herd is headed for the rocks.
This book resonated with me as I just completed my PhD thesis on the Affective Heuristics of the 2008 stock market crash which focuses on human psychology and investment behavior.
Teaching at the University, I see so called experts professing to know something I feel they really do not. Their stale knowledge was useful 30 years ago but being out of the field for so long, what motivation do they have to upgrade their skills as they collect their 6-figure salary and fat pension? Yet hundreds of students eat up every word thinking they are learning something useful. One cannot blame the teacher nor the student but the fact remains that common sense trumps theoretical knowledge from any expert.
Unfortunately, I learned the hard way that listening to experts doesn’t always translate to big profits. In fact it originally had the opposite effect. In 1987, at the tender age of 17, I was working two jobs while finishing up grade 12. I was also studying the stock market and thought I was going to be a millionaire by the time I was 19 if I listened to the “experts”. They were saying BUY BUY BUY – so I invested my hard earned money into the market in September of 1987 and then Black Monday hit wham! – the single one day largest crash in history. I was wiped out! I could have held and waited for the market to rebound but I sunk all my money into Bank of Montreal call options which were expiring in December of that year—yes, I really listened to the experts. Again during the tech rally, I bought when everyone else was buying and again lost – I wish Bob’s book had been written back then. In Chapter 2 he talks practically about contrarian investing and why it is important.
In 2002 one year before I started my gold newsletter, I decided to learn from my past mistakes and do exactly the opposite of what the so-called experts were saying as they echoed, “don’t buy gold.” I bought my first gold stock and silver coins during that year—it paid off!
As Bob explains: You would need to know the basics of investing because none of the experts or gurus wants you to think. They want your money and the only way to do that is to keep you ignorant. So they take your money and tell you what you want to hear. (A lack of) money is the root of evil. It’s a very successful business plan; politicians have been using it for centuries. If you tell people what they want to hear; they will vote for you. That’s just as true in investing as it is in the voting booth.
Bob answers these important investing questions in-depth: Should you invest on news? Does manipulation really matter? When should you sell? Why is contrarian investing important? What is the next big investment opportunity? The little investment in this book could save you alot of money and also could make you a lot more money.
Nobody Knows Anything is available on Amazon in Kindle format for $3.99 and in paperback format for $9.99
I’ve always enjoyed reading Bob’s books and articles. I appreciate the fact that he has a no holds bar approach to writing – he calls it like it is. He has a flare for writing by providing a story that is related to the material and then proceeds to give examples. Even a seasoned investor can get a lot of practical information from this 125-page power packed book.
Kal Kotecha PhD
Kal Kotecha, PhD, is the editor and founder of the Junior Gold Report, a publication about small cap mining stocks that is read and enjoyed by thousands of investors. He was the editor and creator of the Moly/Gold Report, which focused on critical analyses and open journalism of companies profiting from the precious and base metals sector. The scope of his current activities include worldwide onsite analyses and reporting of developing companies. Kal has previously held leadership positions with many junior mining companies. After completing his MBA in Finance in 2007, Kal completed his PhD in Business Administration in January 2016. His thesis was on the Affective Heuristics of the 2008 stock market crash. He also lectures Economics at the University of Waterloo and Niagara College where he was voted Professor of the Year 2013/2014.