Gyroscopic Investing

A different approach to reducing the irrationality of Wall Street can be found in new research led by Steve Sapra and Paul Zak, neuroeconomists at Claremont Graduate University. Dr. Zak got the idea for the paper after spending time with leading analysts and traders at a conference. "These guys are a pretty weird bunch," he says. "They're very rational and very competitive."

Dr. Zak wanted to see if he could find the genetic signature of this personality type. Did certain genes correlate with investment success? What's the difference between the prudent decisions of somebody like Warren Buffett—he's famously unwilling to invest in bubbles—and the reckless bets that cause so many other traders to lose vast sums of money?

http://online.wsj.com/article/SB1000142 ... 97928.html

Arrogance seems to be what sinks many of these Masters of the Universe.

MediumTex wrote: Arrogance seems to be what sinks many of these Masters of the Universe.

Indeed, I try to always cultivate humility so I don't go off the deep end.  Fortunately, I seem to have balanced my dopamine-output.  I rarely get excited about trading or investing anymore; its all just numbers and calculations and formulas, but it could be I'm just too jaded.

In fact, I think I get a dopamine boost from arguing on this forum! 

MG

MediumTex wrote: Arrogance seems to be what sinks many of these Masters of the Universe.

Warren Buffet seems to be fairly grounded.  He never left his home state and still lives in the same house he purchase 40-50 years ago.  I doubt that too many Goldman Sachs employees can make the same claim.  Then again, maybe it doesn't make any difference and I may be pre-judging GS emplyees.