I’ve devoted quite a lot of space to the topic of long-term strategic investing (the discussion runs from Blog #35 and I’m not done yet!). The reason why I’m harping so much on this topic is because I’m wedded to the idea that investment should be simple (but not simplistic).  There is a huge difference between them.

Simplistic investing implies that one is naive, easily influenced by hearsay and sound bites, buying stocks for no better reason than everyone at the office water cooler is buying, flipping your stocks like burgers, chasing hot markets and so on. These are signs of sloppy investing, and I can tell you that it is rampant.

Good investors craft sensible asset allocation policies based on a correct understanding of how markets “get it right” over the long run even if they go off-tangent in the short run. For a start, good investors understand that …