I have money in a bunch of index funds, most of which do a fair job tracking the S&P 500. I also have some stock in Apple. Now, it probably doesn't make sense for an investor like myself (who by any reasonable estimation should be considered very small fry) to own any individual stocks, but I like Apple and their products and I wanted to feel involved.
I've been working at a real job for a couple of years, and my constant regular investment into index funds has grown to a pleasing sum, which far outweighs the amount of money I have in Apple stock. Therefore, the fact that the S&P (and therefore the majority of the money for my retirement) is down by a half percent should cause an amount of unhappiness which far outweighs the fact that Apple stock is up by almost a percent.
But it doesn't. I'm so psyched that my paltry investment in Apple has gone up 45% since the day I bought it, and the fact that those gains are far offset by my losses in the market movement as a whole does not matter a whit to me. This proves that I'm not a rational actor - remember this for when we play games together.
Speaking of that: Anyone up for Risk this weekend? It's been a whlie, but I'll still kick your ass.
Comments (1)
Funny you should mention that. I just listened to a podcast on board games and was going to suggest that our crew take up board gaming. Like the sophisticated new European games. Settlers of Catan on Sunday?
Posted by Ben | June 5, 2007 4:34 PM