John Maynard Keynes is one of the most well-known economists ever. It turns out he had some insights about markets and human nature too. Keynes laid out his views in Chapter 12 of The General Theory of Employment, Interest, and Money.
I read Chapter 12 recently. It offers a densely packed introduction to the headwinds of long-term investing.
Like, Ben Graham, Keynes believed that investing has more to do with managing yourself than your money. He understood that the advantages market’s offered often brought out some of the worst in investors. Not surprising, they both chalk it up to being drawn toward speculation. Continue Reading…