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A comment on Newton's Financial Misadventures in the South Sea Bubble. Parent comment

Re:Newton's Financial Misadventures in the South Sea Bubble by melling on Wednesday September 18, 2019 @04:51PM (#21010046)
Not sure it’s a Dunning-Kruger Effect. Investment bubbles drag people in. He thought it was overvalued when he doubled his money and got out. He was probably right but the market stayed irrational. Looks like he was buying the dips on the way down too.

“Tales abound of how he invested early, and cashed out with 100% profits as market valuations went to what seemed to him unjustified levels. However, as prices continued to advance, he supposedly invested again at the peak and lost most of his fortune in the crash that followed”

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Re:Newton's Financial Misadventures in the South Sea Bubble by H8crilA on Wednesday September 18, 2019 @07:26PM (#21011592)
This is a lesson to not assume you're good at investing if otherwise intelligent.

The Intelligent Investor, by Graham, brings up the archetypical example of a doctor/dentist and his financial misadventures. His (or her) disadvantage is that they're obviously intelligent which pushes them to be overconfident in a field in which they have zero experience. Overconfidence breeds poor risk management and eventual trouble.

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