http://www.frips.com/4fab.pdf

It sounds so simple.

One observation I might add, all of those characteristics except for 3 are required to be a good investor. The three you can live without are the gutless investors (those that sell when the stock is down, Bing, another one of your articles was disappointing to read on this), the irrational investors (though it does create more opportunity in the short run), and the obnoxious drunk (boy do I have stories).

Rich, well if they weren’t they would suck!

Nervous, you can’t trust anyone, because everyone when not being watched will do something to benefit themselves.

Greedy, this one is touchy, but I do believe if the person investing for you gets paid when they do a good job for you, then you want someone who wants to make a lot of money. However, a note too all investors, do your homework and if someone isn’t performing too its benchmark (set a timeframe you are comfortable with) then dump them. It’s the only way investors will ever get the upper hand.

Intelligent, agreed on the crazy part

Ungrateful, you want me to be happy for you doing your job?

Moody, you would be too if you can’t trust anyone and will get fired the minute you screw up. Plus, think about all the people you have to work with.

Boring when sober – analysis is boring, so are the analysts.

Vicious when disappointed – This again is sad but important. I have just had two very angry calls with management teams over their recent performance. One of them added to (I am not arrogant enough to think I caused it) the CEO resigning. When people are getting things done, you want someone being vicious taking care of your money.

Never happy for long… I gotta get back to work…
…

Those who do not agree are just short-sighted and do not see the inherent perfection that is the market. If the market is up, it is good. If the market is down, it is good. If the market is in the middle, it is good. People need to realize that the market knows all, sees all, has all of the power, and is above human rationalization.

It’s the market. It’s all about the market. Everything that happens in the world, happens because of the market. The market wants what it wants and it wants it right now.

Dude, your dealing with a toddler. This kind of egocentric, narcissistic blather is hallmark of very young children that haven’t yet developed the maturity to realize that (1) the world is not just an extension of themselves and (2) the inability to delay its own gratification.

The market has to be female… I can say it… I am one. It is wishy-washy, and what is good enough for it one day, isn’t acceptable the next. It is irrational and completely insane. It doesn’t have to have a reason or explanation for anything it does, that’s just the way it is, and you have to accept it.

Oh my god, the Market is Britney Spears!

But seriously, I love the volatility and the speculators. Its the latter who give us buying and selling opportunities. Right now I am cheering the fall (in India)- wish it would fall more so that I could buy really cheap.

He’s unreliable in the short term, but stunningly reliable in the long term. Just because he missed your birthday doesn’t mean he won’t be around for your retirement party.

There are a few people who think he’s fun and love working with him or just being around him. To be fair, most people think those few are crazy, jerks, or both.

He makes numbers — lots of numbers — and numbers are a key nutrient of business and government.

And he gives obsessive people one more thing to obsess about.

The concept of Mr. Market goes something like this: imagine you are partners in a private business with a man named Mr. Market. Each day, he comes to your office or home and offers to buy your interest in the company or sell you his [the choice is yours]. The catch is, Mr. Market is an emotional wreck. At times, he suffers from excessive highs and at others, suicidal lows. When he is on one of his manic highs, his offering price for the business is high as well, because everything in his world at the time is cheery. His outlook for the company is wonderful, so he is only willing to sell you his stake in the company at a premium. At other times, his mood goes south and all he sees is a dismal future for the company. In fact, he is so concerned, he is willing to sell you his part of the company for far less than it is worth. All the while, the underlying value of the company may not have changed – just Mr. Market’s mood.

The best part of this entire arrangement: you are free to ignore him if you don’t like his price. The next day, he’ll show up at your door with a new one. For your interest, the more manic-depressive he is, the more opportunity you will have to take advantage of him [don't worry, he doesn't have feelings or mind being taken advantage of.] As long as you have a strong conviction of what the company is really worth, you will be able to look at Mr. Market’s offers and reject or accept them… the choice is yours.

Because, on average, you must so that your nestegg can have any chance of keeping up with the bite inflation and the taxman take out of it every year. For most normal folks, the best answer is to just keep chunking the money into a balanced portfolio of mutual funds paycheck to paycheck and ignore it. Hopefully, when the day of reckoning comes, dollar-cost-averaging and actuarial prowess will have left you with just enough to pay the gravedigger with your last nickle.