Thursday, October 14, 2010
UC Regents & CalPERS Drank the Same Kool-Aid
Just got around to reading last week's News & Review about funny business by UC Regents. I guess the Haas School of Business was asleep at the wheel.
It seems that key regents got carried away just like some CalPERS board members and financial advisors. Why do rich people think they are smarter than the rest of us?
Maybe because it's because most people aren't paying attention. Or maybe it's because most people have drunk the exact same kool-aid, and think that men in expensive suits must be better at making money.
But doing what everybody else is doing is guaranteed to be a lame investment, although doing the opposite of everyone else is not a guarantee either. There's no substitute for rationality.
And there's no substitute for thorough inspection of the reality behind the money, even if widespread lack of transparency makes it practically impossible.