08 February 2013
“I consider myself to be a farmer—not a hunter. And I think most people on Wall Street are hunters. They like to fell big beasts and I’m very comfortable planting a few rows and just tending to them carefully.”
– Tom Russo, Gardner, Russo & Gardner
Investing is often referred to as a game, or talked about as if it belongs in a casino. If you invest like a hunter, it absolutely is a game...and the odds are stacked woefully against you.
We all know the hunters. They are never shy about talking about the dragons they have slayed and are full of hypotheses, forecasts and opinions about the next big thing. They make investing sound very exciting and easy. To the hunter, investing is all about the next big score and the only way to win is to out-hunt everyone else searching for prey.
Wall Street's mission is to turn everyone into a hunter. The more activity they create, the more they win. Not only does increased activity create a greater likelihood of mistakes, but more activity creates more trading commissions, so they win regardless of whether you win or lose.