In Jason Zweig's commentary accompanying Benjamin Graham's book "The Intelligent Investor", he points out something similar:
> There are two ways to be an intelligent investor:
-by continually researching, selecting, and monitoring a dynamic mix of stocks, bonds, or mutual funds;
-or by creating a permanent portfolio that runs on autopilot and requires no further effort (but generates very little excitement).
> Graham calls the first approach "active" or "enterprising"; it takes lots of time and loads of energy. The "passive" or "defensive" strategy takes little time or effort but requires an almost scientific detachment from the alluring hullabaloo of the market. As the investment thinker Charles Ellis has explained, the enterprising approach is physically and intellectually taxing, while the defensive approach is emotionally demanding.
Later, Zweig goes on to say that if you must, restrict yourself to speculation with at most 10% of your assets.
> For better or worse, the gambling instinct is part of human nature--so it's futile for most people even to try suppressing it. But you must confine and restrain it. That's the single best way to make sure you will never fool yourself into confusing speculation with investment.
> There are two ways to be an intelligent investor:
-by continually researching, selecting, and monitoring a dynamic mix of stocks, bonds, or mutual funds;
-or by creating a permanent portfolio that runs on autopilot and requires no further effort (but generates very little excitement).
> Graham calls the first approach "active" or "enterprising"; it takes lots of time and loads of energy. The "passive" or "defensive" strategy takes little time or effort but requires an almost scientific detachment from the alluring hullabaloo of the market. As the investment thinker Charles Ellis has explained, the enterprising approach is physically and intellectually taxing, while the defensive approach is emotionally demanding.
Later, Zweig goes on to say that if you must, restrict yourself to speculation with at most 10% of your assets.
> For better or worse, the gambling instinct is part of human nature--so it's futile for most people even to try suppressing it. But you must confine and restrain it. That's the single best way to make sure you will never fool yourself into confusing speculation with investment.