The foundation of the METAR board is an awareness of economic and investment history based in a knowledge of group psychology.
With great humility, it’s clear that a board which encourages (let alone enforces) a single point of view can lead to “information cascades” in which an individual can make a decision against their own personal judgment because of a group consensus.
https://en.wikipedia.org/wiki/Information_cascade
It’s a theory used in the field of behavioral economics and has important implications for financial markets. Recognizing and avoiding this behavior can help people make better financial decisions.
https://www.investopedia.com/articles/investing/052715/guide…
Historically, many bubbles have grown and popped due to the enthusiasm generated by information cascades. These are fun to read about and also cautionary.
https://www.amazon.com/Manias-Panics-Crashes-History-Financi…
https://www.amazon.com/This-Time-Different-Centuries-Financi…
The METAR Board explicitly invites all investing approaches, from the wildest bull to the gloomiest bear and all perspectives in between. In discussing the pros and cons of each approach, we develop a wider perspective and more knowledge.
The METAR Board also realizes that each investor is in a different situation in life and with different tolerance to risk. What is right for one may wrong for another. The important thing is to make data-based decisions – with full awareness that RISK means potential LOSS as well as potential gain.
Saul’s Board is very clear about their objectives. They aren’t shy about pulling posts that don’t conform to their views. If a post mentions valuation (which they reject for their type of stock) they will censor it. However, if a post thoroughly analyzes a company’s sales figures and concludes that it is no longer a high-growth stock and should be sold, it will be allowed. This is the discipline of the Saul method. Saul has made a lot of money this way and he’s sharing his technique.
Saul’s Board does not allow any discussion of Macroeconomics, even though rising interest rates will hit growth stocks especially hard. It’s a different philosophy that shows lack of historical perspective. Every bubble in the past had a great story that many people bought into, pushing valuations way past historical norms.
For more perspective, see https://www.hussmanfunds.com/comment/mc211120/
I respect Saul tremendously. His perspective and investment approach is opposite from mine, but that’s OK. Differences of opinion is what makes markets.
Wendy