! John Maynard Keynes as an Investor: Timeless Lessons and Principles
John Wasik is a journalist, speaker and the author of “Keynes's Way to Wealth” (McGraw-Hill, 2013). He writes a weekly investment column for Reuters and contributes to The New York Times, Forbes and other publications.


Sam from Tx. posted over 3 years ago:

It would be nice if the 10 keys could be printed out with out having to print the whole article.

Thanks Very interesting

Sloan from Nevada posted over 3 years ago:

I would add one more step to "Keynes’ 10 Keys to Wealth:" Start Early! It makes step #10 so much easier.

That is my biggest regret. One needs time to learn from, and recover from, his mistakes.

David Levine from NC posted over 3 years ago:

Excellent; sorry for my brevity but I need to go ice the bubbly.

G Muren from CT posted over 3 years ago:

Although AAII gives the same advise elsewhere the 10 Keys hit the spot, particularly the 10th.

D Stanczak from IL posted over 3 years ago:

"Viewing his record as an investor, it’s ludicrous to call Keynes a socialist, which he wasn’t. -- "Wow! I did not realize our investing records so emphatically determine if we are (or are not) a socialist. It is unfortunate AAII allows writings that contain such unfocused commentary.

For the record: Keynes did not advocate personal savings. He advocated that workers spend their entire income. Any part of a workers income not spent he considered
"hoarded" money. Clearly what he advocated in his writings he did not apply to himself.

Neil Hoffmann from PA posted over 3 years ago:

even after 1928 it does not sound like Keynes was a passive investor from the perspective that he selected the companies he bought based on a specific set of criteria. thats quite different from buying an index fund.

R Delgado from CA posted over 3 years ago:

What index funds were around in the 1930's? I suspect the author is projecting his own thoughts.

George Binder from MI posted over 3 years ago:

Keynes commissions must have been horrendous!
Odd lots, commodities, # of sales. What he could have used, was a computer. Paper , headaches, and brokers ringing the phones.ummph

Dave Gilmer from WA posted over 3 years ago:

Dividends Don't Lie!

That is a great title for a book -- too bad Geraldine Weiss beat me to it!

James Grant from OH posted over 3 years ago:

I had to chuckle when I came to the box titled "Dollar Cost Averaging". I guess it was intended to demonstrate the merits of DCA and Keynes' strategies. - - - I don't think it did either.

By my calculations, if Keynes had to sell all of his holdings in U. S. Steel listed in the box, he would have ended up with a 5% loss.

There are few things that make less sense than dollar cost averaging into a bear market.

I don't care how good a company is. If the rest of the people in the market think its stock is overpriced and are driving the price down, I look elsewhere for a better alternative.

Some other readers may say, "Well, Keynes was investing for the long term." My response is that view presumes there were no stocks that were rising in price.

The cutest statement in the box is, "If Keynes liked a stock, he kept buying it and was encouraged when the price went down." So does that mean if I buy something and the price went up, I should be discouraged? (no sarcasm intended) - - - What happened to the simple, old adage, "Buy low. Sell high"?

One final point, I suggest DCA is inconsistent with any value investing strategy which helps to identify when a stock is undervalued and attempts to buy low.

Richard Friary from MT posted over 3 years ago:

Any investor should be pleased to have compiled and enjoyed an investing history like J. Keynes'. He beat the U. K. Equity Index by an annual average of 7.13% in each of the years from 1925 to 1946 inclusive. However, in his article (JAAII 36 (3), 17–21 (2014)) John Wasik omits to analyze Keynes'record. His information ratio (0.58) for the 22-year term is statistically insignificant. So, Keynes' investing history shows no skill but, alack, only luck.

James Magner from FL posted over 3 years ago:

One has to be struck as to how different Keynes' private actions were as an individual as opposed to his public policy recommendations.

Countries are to deficit spend, drive interest rates to possibly zero and encourage spending over the antisocial evil of savings.

Keynes on the other hand was always concerned about his future and trying to acquire wealth and sock it away.

A case of do as I do not as I say.

Also his record looks better than average if one excludes those periods when he squandered two fortunes. Many mutual fund mangers know the importance of picking one's investment period.

Les Mckay from NV posted over 3 years ago:

"Viewing his record as an investor, it’s ludicrous to call Keynes a socialist, which he wasn’t." Wow. Are we so easily deceived? What socialist manages his own money the way he insists we manage ours? Many socialists or communists are quite wealth but they promote redistribution of (other people's) wealth. Warren Buffet has said he should pay more taxes but as far as I know he has not voluntarily done so. His money is in trusts and he continues to enjoy favorable tax rates for dividends and long term capital gains. Obama bin Lyin' is quite wealthy yet he has immediate family members starving to death. He has no intention of redistributing or sharing his wealth. Perhaps we should do as the socialists and communists say and not as they do.

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