| Are you interested
in the entertainment value of the stock market,
or is your primary goal to maximize returns
and minimize your risk in an effort to reach
your long term financial goals? It
is as simple as that.
The CAM philosophy of
investing can be summed up in a quick game
called "Outfox the Box."
Are you ready? You are
the contestant in this game. There are ten
boxes, and you know how much is in each box.
These are your choices, it looks something
like this....
| $1000 |
$2000 |
$3000 |
$4000 |
$5000 |
| $6000 |
$7000 |
$8000 |
$9000 |
$10,000 |
Which box will you choose?
(Remember, you know how much is in each box)
This is not a trick question.
Anyone would choose the $10,000 box. The choices
you make when building a diversified portfolio
are just as easy.
This
time let's change the rules a little.
This time only the $8000 box is shown.
It looks something like this....
| $8000 |
?? |
?? |
?? |
?? |
| ?? |
?? |
?? |
?? |
?? |
Now which box will you
choose?
The answer is also obvious - you would choose
the $8000 box.
Why?
Because the chance of increasing your winnings
is not worth the risk of choosing an amount
substantially less, unless of course you are
a gambler, in which case, you are probably
at the wrong website.
With the stock market average consistently
beating 75% to 85% of all mutual funds,it
is a testimony to the gargantuan advertising
budget of the financial industry that so many
investors forego a sure thing of the $8000
box in search of something better.
While
you're at it, do you feel lucky?
Go ahead, make your day.
Game
|
