Investing

George Costanza: Wall Street Savant

By John Del Vecchio  |  February 1, 2019

On Wednesday, I introduced a simple concept I call “Unbounded Wealth.”

It’s all about living life on your own terms… even when amid a polar vortex. The key is “your own terms”… you have to separate yourself from the pack.

Over nearly a quarter of a century of working in financial markets, I’ve developed what I call the “George Costanza Theory” of investing.

George Costanza is, of course, a character made famous by the iconic 1990s sitcom “Seinfeld.” His arc on the show is defined by lost jobs, surreal marriage engagements, beached whales, and George Steinbrenner.

He’s a classic – and hilarious – “ne’er do well”… that is, until he decides to do the “exact opposite” of his first instinct.

As I note in today’s video, the idea behind George’s shift is, “Well, maybe something will work out for a change…”

And it does.

This is the essence of the George Costanza Theory: You should do the exact opposite of what everybody else is doing.

And here’s why: “In the long run, the crowd is almost always wrong.”

Consider this: In the late 90s, just before the dot-com crash, individual investors had their highest allocation to equities ever… right at the peak.

And consider this too: In March 2009, amid the Global Financial Crisis, individual investors had their lowest allocation ever… right at the bottom.

Now, here’s a little secret: Professional investors, collectively, are terrible at deciding when “to allocate” or “not to allocate.”

Well, I’ve cut this knot of Shakespearean confusion with Seinfeldian simplicity…

The thing is, I’ve developed a fundamentals-based system that basically guarantees I’ll be looking at things other investors simply don’t see… Despite the fact that these opportunities are “hidden in plain sight”…

Today’s video is about the “George Costanza Theory”… and it’s about “hidden opportunities”… but, mostly, it’s about living life on your terms and making your way to “Unbounded Wealth.”

 

John Del Vecchio

Author of Rule of 72: How to Compound Your Money and Uncover Hidden Stock Profits and What’s Behind The Numbers: A Guide To Exposing Financial Chicanery And Avoiding Huge Losses In Your Portfolio, John is a forensic accountant at heart. Standing on the shoulders of the great David Tice, James O’Shaughnessy and Dr.MORE FROM AUTHOR