Entering text into the input field will update the search result below

'There Are No Atheists In Foxholes' (And There Are No Passive Investors In A Bear Market)

Jesse Felder profile picture
Jesse Felder


  • If you can't be assured that your principal is protected and that you will receive a reasonable rate of return, then you are not investing; you're simply betting on higher prices.
  • A speculator who believes himself to be an investor does not adopt the most important rule of speculating: take losses quickly.
  • A true investor has a strong idea of the fair value of assets in his portfolio regardless of what Mr. Market quotes them at in real time.

This article was written by

Jesse Felder profile picture
Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he lives in Bend, Oregon and publishes The Felder Report.

Recommended For You

Comments (8)

jprizzuto profile picture
@Jesse Felder - stop pontificating... the public markets are what they are. if they favor speculators over investors, so be it. besides, there is a wide grey area between the two. and ur veiled attempt at fear hidden behind a warning that passive investors are really 'just' speculators, sounds like an ego that is angry cause it dont like the way the markets are.

history is full of reasonable investors who upon thorough analysis made an investment that promised the safety of principal and an adequate return only to go broke. there are plenty of speculators trying to reinvent themselves too.

anyway, if one was to recognize that they are not a passive investor but instead a speculator and then was to follow ur 'loss mitigation' advice by 'hedging' there portfolio or employ a 'diversification' or 'trend following' system, what does that make them,,,, a specinvestor?

specinvestor - an investor that speculates but hedges or diversifies!

just having a little fun...
while taking notes I noticed I have copied the entire article! Thank You So Much Jesse Felder!
JGC67 profile picture
"An investment operation is one which, upon thorough analysis, promises safety of principal and an adequate return."

I'd never argue with Ben Graham, but promising safety of anything in this world isn't possible.

I say a strong YES to good due diligence and finding a margin of safety.

And, I have full understanding that speculator's are forced to cut their losses quickly, as they tend to invest with the 'hope' of making profit.

But with each passing election, I find the national gene pool for elected officials to be pretty weak and getting weaker. This, too, impacts margin of safety.
Kenybouy profile picture
Always look forward to your articles. Passive to panic seems logical when it all hits the fan.
Buyandhold 2012 profile picture
"...take losses quickly."

That is a mistake.

For example, you could have invested $22,000 in Home Depot on April 1, 1985 and then sold it at a loss for $13.000 on November 1, 1985.

Or you could have invested $22,000 in Home Depot on April 1, 1985, never sold it, always reinvested the dividends, and today your investment would be worth $2,236,000.

Would you rather have $13,000 or $2,236,000?

Call me greedy, but I'll take the $2,236,000.

So I never sell.
Scooter-Pop profile picture
This is NO Bear Market. However, if a new face is in the Whitehouse in November, YES the Bear chews the Bull up.
Wiekierc profile picture
Are you suggesting Trump should continue using bronzer for the sake of the market?
Scooter-Pop profile picture
Sweet Snowflakes focus on such don’t they. Melania is worthy of focus, pleasing. Glad I deployed Preferred Redemption Cash yesterday before the close. MAGA 🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸🇺🇸
Disagree with this article? Submit your own. To report a factual error in this article, . Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.