On calling people "idiots" for buying/selling stock

My TechCrunch colleague MG Siegler seems to have completely missed the point of my post about his post saying that people who sold their Apple stock in October 2011 were idiots and/or morons. Happy to explain.

Truth is my initial idea was to write a post solely to point out why I think it’s wrong to call people who sell stocks of a company at a certain point in time “idiots” unless you know:

a) when they bought it

b) why they sold it

c) what they did with the proceeds

I didn’t want to ‘attack’ (for lack of a better word) MG, so I asked our editor-in-chief Erick Schonfeld to chime in. He suggested I should make my comparison to Google’s surge in share price the focal point of my post, so I did.

MG asserts that I said something stupid and gave ‘the worst advice ever’.

Obviously, I wasn’t giving anyone advice at all. I’m smart enough to realize I’m in no position to be giving people advice on which stocks to buy or sell, and one can only hope MG realizes the same is true for him.

Anyway, what I said wasn’t stupid at all. Buying GOOG in October 2011 was a great move if you sold it two weeks ago. It looks bad now. It may look like a great move again in a few weeks. Welcome to the wonderful world of the stock market.

Or, what one of MG’s commenters said.

I’ll reiterate my point once more. You can’t call people idiots or geniuses for selling stock unless you know:

a) when they bought it

b) why they sold it

c) what they did with the proceeds

I understand what MG meant. He’s right in calling some people who sold their Apple stock in October 2011 idiots, but really only if they did it based on what some ill-informed (ok, stupid) ‘analysts’ were saying after Apple missed Wall Street’s expectations. That’s a pretty big if.

 

 

Advertisements

One thought on “On calling people "idiots" for buying/selling stock

  1. That’s because your colleague MG is an idiot that’s totally in the tank for Apple. People like that can’t be reasoned with since their thoughts aren’t guided by logic. In his world, selling Apple stock, for whatever reason, is idiotic.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s