The Two Types of Investors
BY CHARLIE BILELLO
08 SEP 2021
There are two types of investors: Pundits and Professionals…
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The Pundit thinks they know everything.
The Professional knows that learning is infinite.
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The Pundit makes subjective predictions.
The Professional makes objective assessments.
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The Pundit seeks self-promotion.
The Professional seeks self-improvement.
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The Pundit exudes hubris.
The Professional exudes humility.
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The Pundit is forever calling for the next crash or recession.
The Professional is forever focused on things they can control.
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The Pundit only searches for things that confirm their beliefs.
The Professional seeks all evidence, even if it runs contrary to their views.
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The Pundit sells fear and greed.
The Professional helps others control these emotions.
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The Pundit has a sense of entitlement.
The Professional has a sense of gratitude.
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The Pundit seeks to indoctrinate.
The Professional seeks to educate.
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The Pundit makes extreme forecasts to gain attention.
The Professional forecasts a wide range of possible outcomes to gain respect.
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The Pundit thinks in terms of long or short, this security or that security.
The Professional thinks in terms of asset allocation and the entire portfolio.
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The Pundit believes in certainty, conviction, and precision.
The Professional believes in uncertainty, reservation, and probabilities.
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The Pundit reads breaking news and watches financial TV.
The Professional reads books and listens to podcasts.
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The Pundit sees everything as black or white.
The Professional understands there is often a gray area.
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The Pundit makes the simple sound complex.
The Professional makes the complex sound simple.
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The Pundit has a prophecy.
The Professional has a plan.
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The Pundit has an answer for every question.
The Professional is often saying “I don’t know.”
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The Pundit provides a reason for every wiggle in the market.
The Professional provides evidence of randomness and noise.
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The Pundit believes their success is solely a result of their exceptional talent.
The Professional understands their success is a result of hard work and luck.
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The Pundit lectures.
The Professional listens.
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The Pundit is thinking about the next day.
The Professional is planning for the next decade.
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Pundit or Professional? The choice is yours.
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