Martha - You Just Don't Fit In
March 26, 2008
– Comments (6)
Though few remember her tagline on Martha Stewart's apprentice wannabe show, they certainly do remember her legal imbroglio over her Imclone stock sale. It ended her in jail. [Imclone being the thin tie-in for this biotech oriented blog].
But how good an investor was Martha -- even with her high priced (and well-informed) assistance. Well, it turns out her portfolio was divulged at the trail, and has been written about. I hadn't seen it before. I'd tell you 'It's a Good Thing' - but it sure ain't (is there an apostrophe in ain't?).
Here is a summation and commentary by Meir Statman - a well known researcher into behavioral investing.
Marta Stewart's Lessons in Behavioral Finance - Journal of Investment Consulting, Winter 2005 [Linked via his faculty website, lots of good stuff there]
Turns out that Martha does in fact fit in - if fitting in means suffering the foibles and misjudgements of a typical investor - but she is so clearly not a Fool.
Anyway this is an interesting read (cut her some slack - not many portfolios looked good in December 2001) and may well contain some behavior you see reflected in your own portfolio management.
Zz
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