Cashing in on Wall Street’s Ten Greatest Myths


  • Pages: 239
  • Format: PDF
  • Published Date: 2005


Cashing In on Wall Street’s Ten Greatest Myths examines the most well-known of these, telling investors which are nonsense while uncovering core concepts that have always provided the safest path to building wealth. Wall Street veteran Richard Lackey begins each chapter by detailing a particular myth, explains its flaws, and then reveals how investors can use the kernels of truth in the myth to make profitable investment choices.

Author’s Introduction:

In Cashing in on Wall Street’s Ten Greatest Myths, we examine the myths and misconceptions that have been exploited by Wall Street to the ruin of millions. Each myth can be studied and appreciated independently to reveal its onerous nature and its inherently negative impact on long-term investor profitability, but there is greater value to be found when the subject matter is considered in aggregate. Either way, the picture clearly depicts a Wall Street that has been herding investors like bulls in Pamplona.

Our goal as long-term investors is essentially to improve both the proficiency and consistency of our returns. The first step is to understand the oxymoronic design of Wall Street. The theories espoused are predicated on a belief that investors cannot really do better than the general market over time, while simultaneously brokers spend hundreds of millions of dollars to convince you that their funds are most likely to outperform the market, while year after year the majority fail miserably.

Wringing their hands, they twist and tweak their models, all the time failing to recognize that it is the rationale behind their models that holds them back. Meanwhile, there has been a quiet but very prosperous group of investors who are raking in amazing profits in markets going up, down, and sideways. In Cashing in on Wall Street’s Ten Greatest Myths we tear apart the myths and uncover the core concepts that have consistently proved to safely build wealth.


  • Risk Is Diametrically Opposed to Reward
  • Benchmarking Is the Best Measure
  • Buy and Hold Always Works
  • The Markets Will Always Go Up
  • Mutual Funds Are Safe
  • All Funds Are Created Equal
  • IPOs Are Easy Money
  • Options Are for Risk Takers
  • Diversification Eliminates Risk
  • Markets Are Efficient