29 Dumb Things Finance People Say

Motley Fool LogoThis article by Morgan Housel of the Motley Fool, posted at Business Insider is a hilarious, absolute must-read.

From the article, a few of my favorites:

“They don’t have any debt except for a mortgage and student loans.”

OK. And I’m vegan except for bacon-wrapped steak.

“Earnings missed estimates.”

No. Earnings don’t miss estimates; estimates miss earnings. No one ever says “the weather missed estimates.” They blame the weatherman for getting it wrong. Finance is the only industry where people blame their poor forecasting skills on reality.

“More buyers than sellers.”

This is the equivalent of saying someone has more mothers than fathers. There’s one buyer and one seller for every trade. Every single one.

“We’re trying to maximize returns and minimize risks.”

Unlike everyone else, who are just dying to set their money ablaze.

“The Dow is down 50 points as investors react to news of [X].”

Stop it, you’re just making stuff up. “Stocks are down and no one knows why” is the only honest headline in this category.

“Investors are fleeing the market.”

Every stock is owned by someone all the time.

And, IMO, the best one:

“He was tired of throwing his money away renting, so he bought a house.”

He knows a mortgage is renting money from a bank, right?

The article can be found and read at 29 Dumb Things Finance People Say – Business Insider.