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The Tao Jones Averages: A Guide to Whole-Brained Investing
Mixes humor, common sense, psychology, and Taoist philosophy in practical suggestions for applying bicameral thinking and Taoist principles to stock-market and investment considerations
176 pages, Paperback
First published October 20, 1983
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Displaying 1 - 15 of 15 reviews
May 6, 2025
This was not a good book. The dude has no credibility. You’re reading a book about Taoism by an author who got interested in the philosophy after reading a Winnie the Pooh Taoism book (says the guy (me) who’s now further exploring Taoism after reading a stock market Taoism book written by a guy inspired by a Winnie the Pooh Taoism book). I give it a modicum of respect for being an early proponent of behavioral finance and for having some quirky little dated elements (the brief dabbling of race & gender science, just the concept of his business), but overall Goodspeed is a shame to Taoism. He uses it and this tract to shill his own silly business (the least Tao business imaginable) and his investment track record, which probably sucks hole if you take its entirety.
April 17, 2023
Jeremy Hosking (Marathon Partners / Hosking Partners) had recommended the book in a podcast called Behind the Balance Sheet.
The central idea of the book is that the analyst community has become prisoners of numbers and data. We use the same tools to look at the same data, and not surprisingly we arrive at very similar conclusions. The challenge is to figure out changes taking place before they make their presence felt in the numbers. Because once it’s in the numbers the consensus will reprice because now data is in a format that the analysts understand / can analyze.
Bennett Goodspeed recommends that we develop or at least listen to the right side of our brain - visual, non-verbal, intuitive, emotive part of the brain. In one of the later chapters he takes you through a questionnaire which will help you identify just how dominant your logical part of the brain is. He argues that analysts need to see change and work under conditions of missing information, conditions where the right brain trumps the left brain.
There are quite a few examples and stories that have stayed with me
1. The failure of information processing during the Titanic disaster
2. How Jim Rogers combines observation and a flurry of calls and meetings to generate ideas
3. How it’s easy for professional managers to confuse activity with effectiveness
4. Apprehending the big picture at one glance can’t be obtained through a linear sum of independent observations. It involves both the right brain and system 2 - so feed these with the right information and find exercises to stimulate them.
The central idea of the book is that the analyst community has become prisoners of numbers and data. We use the same tools to look at the same data, and not surprisingly we arrive at very similar conclusions. The challenge is to figure out changes taking place before they make their presence felt in the numbers. Because once it’s in the numbers the consensus will reprice because now data is in a format that the analysts understand / can analyze.
Bennett Goodspeed recommends that we develop or at least listen to the right side of our brain - visual, non-verbal, intuitive, emotive part of the brain. In one of the later chapters he takes you through a questionnaire which will help you identify just how dominant your logical part of the brain is. He argues that analysts need to see change and work under conditions of missing information, conditions where the right brain trumps the left brain.
There are quite a few examples and stories that have stayed with me
1. The failure of information processing during the Titanic disaster
2. How Jim Rogers combines observation and a flurry of calls and meetings to generate ideas
3. How it’s easy for professional managers to confuse activity with effectiveness
4. Apprehending the big picture at one glance can’t be obtained through a linear sum of independent observations. It involves both the right brain and system 2 - so feed these with the right information and find exercises to stimulate them.
July 8, 2021
This readable and very stimulating book weaves together three themes: evidence that modern educational methods and Wall Street culture promote and reward left-brained analytical thinking, and ignore right-brained intuition and insight; in support, a sprinkling of wise epigrams from Chinese philosopher Lao Tzu; and anecdotes about several outstanding investors which show that their greatest successes combined right- with left-brained thinking and thus might have earned Lao Tzu's seal of approval.
The parts of the book about the power and value of intuition and inferential thinking are interesting and provocative. They raise but do not answer the question of how to recognize and cultivate these strengths.
The "Taoist" theme adds flavor to the book. The investment-related anecdotes are too scattered to comprise a coherent argument. But the book does illustrate the value of right-brained thinking, which could apply to any decision making, not only investments.
The parts of the book about the power and value of intuition and inferential thinking are interesting and provocative. They raise but do not answer the question of how to recognize and cultivate these strengths.
The "Taoist" theme adds flavor to the book. The investment-related anecdotes are too scattered to comprise a coherent argument. But the book does illustrate the value of right-brained thinking, which could apply to any decision making, not only investments.
April 18, 2022
From a time when Japan had become an industrial powerhouse. We, in the U.S., were worried. Maybe the Japanese knew something we didn't. From our paranoia came books such as this one. Even so, they weren't always a waste. In this book, I did encounter a few helpful concepts. For instance: what happened in the past may NOT be repeated in the future. So obvious it's easy to miss. Why then did I give the book only two stars? As often happens when publishers try to ride a trend, the book was padded out. Twenty pages would probably have done the job.
June 19, 2020
One of those books I just couldn't put down. The best investors are whole-brained, both creative and analytical. I agree with Jason Voss that intuition is not necessarily System 1 thinking, 'gut-feeling', as depicted by Daniel Kahneman in Thinking Fast and Slow.
https://blogs.cfainstitute.org/invest...
https://blogs.cfainstitute.org/invest...
https://blogs.cfainstitute.org/invest...
https://blogs.cfainstitute.org/invest...
June 7, 2018
Wise words, not only applying to invest but pretty much any choice you make in life.
But like what the book says, take it for what you think is best for yourself: think and feel independent.
But like what the book says, take it for what you think is best for yourself: think and feel independent.
November 10, 2018
Great book, brings in fresh perspective on investing by covering aspects on creativity and right brain! It gets a bit repetitive somewhere but doesn't bore you. Highly recommended.
June 5, 2020
Not a lot new here
I thought there would be more to the story than what I found. Interesting but nothing profound. Final chapter is probably the best.
I thought there would be more to the story than what I found. Interesting but nothing profound. Final chapter is probably the best.
December 25, 2020
Last chapters are quite valuable.
December 6, 2016
The first part was so-so, the second half was good as it becomes more focused on investing. The book has a lot of cartoons and humorous jokes that explain the idea well. I like it.
the central idea of the book is that we will become better investor if we can have balance thinking, relying on both left and right hemisphere. I am quite left-dominant, and I guess so is all of us here. But the right hemisphere will allow us to have intuition and perhaps can see/feel the change before it's reflected in numbers (and become too late).
and we should hang out/bounce ideas off people who are different. So left brain like myself should to talk to right brainer .. etc
the central idea of the book is that we will become better investor if we can have balance thinking, relying on both left and right hemisphere. I am quite left-dominant, and I guess so is all of us here. But the right hemisphere will allow us to have intuition and perhaps can see/feel the change before it's reflected in numbers (and become too late).
and we should hang out/bounce ideas off people who are different. So left brain like myself should to talk to right brainer .. etc
December 22, 2012
This confirmed that combining gut instincts, being widely read and having a decent grasp of stock financial analysis is a powerful method of investing. Humorous, insightful, makes investing a human endeavor, not just a quant exercise.
Currently reading
February 22, 2010so far so good
January 12, 2017
There is more wisdom packed into this little book than one might think. It has been an inspiration for many, particularly a son.
November 3, 2025
Proud to say this is likely a top 5 book of all time. The book is older than me yet of course wiser! But I had to set on a wise journey to find a copy of it also.
Displaying 1 - 15 of 15 reviews