If a Great Musician Plays Great Music But No One Hears… Was He Really Any Good?
Back in 2007 Washington Post Staff Writer Gene Weingarten set up an interesting experiment. He arranged for an accomplished violinist to pay a rare $3.5 million violin in a busy Washington Metro station and recorded the results. Josh Bell typically gets paid $1000 per minute to play but in his 43 minute performance netted contributions of $32.17
So what is the lesson to be learned? Is he overrated as a musical talent or is there another reason why over 1000 people passed by and very few recognized the opportunity to hear a master at work? I don’t have the credentials to comment on the psychology or the music but I do think there is a valuable investing lesson in this. You cannot rely on the crowd to make the best choice.
What does that mean? It means that when the markets are down, it may be a good time to buy. When markets are up, it may be a good time to sell. Sometimes the best investment decisions are made against popular opinion.