Thinking About Money

Dan wrote an interesting blog about whether or not trading is a meritocracy? Dan, well, duh, yeah! Let’s step back. A better question is, is life in general not a meritocracy? I would even say that this is the basis of a free market economy.

So what did I think was the message of Dan’s entry? Simple, either be an active trader/investor or be eaten alive. Do I believe in the “value and hold” strategy? Not really, as I will point out. Do I believe that a good company will always have a good stock price? Mostly yes, but there is a catch and I will point it out in a moment.Though what I do want to point out is that there is a pyramid and the market (books, brokers, etc) wants to keep us at a certain rung level.

Dan mentioned George Soros as an example of a top level trader? Was/is he really? George Soros made quite a bit of money in his fund days, but he made a killing by speculating on the pound. And he believes in the following:

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