Chomsky, for all of his moral dudgeon against American corporations, finds that they make a pretty good investment. When he made investment decisions for his retirement plan at MIT, he chose not to go with a money market fund, or even a government bond fund. Instead, he threw the money into blue chips and invested in the TIAA-CREF stock fund. A look at the stock fund portfolio quickly reveals that it invests in all sorts of businesses that Chomsky says he finds abhorrent: oil companies, military contractors, pharmaceuticals, you name it.Well, as Tim Worstall says, he is the World’s Greatest Intellectual. (I invest in index funds that should show I'm almost as smart.)
When I asked Chomsky about his investment portfolio he reverted to a "what else can I do" defense: "Should I live in a cabin in Montana?" he asked. It was a clever rhetorical dodge. Chomsky was declaring that there is simply no way to avoid getting involved in the stock market short of complete withdrawal from the capitalist system. He certainly knows better. There are many alternative funds these days that allow you to invest your money in "green" or "socially responsible" enterprises. They just don't yield the maximum available return.
Wednesday, October 19
The World's Smartest Investor
In The Branding of the World's Top Intellectual: Noam Chomsky Peter Schweizer notes,