Behavioral Investing: Faith. Patience. Discipline.
Successful investors throughout history have understood that building long-term wealth requires the ability to control emotions and avoid self-destructive behavior. As author, Nick Murray sums up in the following quote, “The dominant determinate of Long-Term, real life investment returns…Is the Behavior of the investor themselves.
Behavioral Investing in Practice
Advisor’s Role in Behavioral Investing
As your financial behavioral coach, we guide you during times of both Euphoria and Fear in order for you to make decisions based on your families long-term financial plan…not today’s most recent media manifested “crisis”
In life it often happens that the answers to our most pressing questions are right in our own backyards.
Behaviors to Avoid
1. Over Diversification
By owning everything… you own nothing
2. Under Diversification
Owning just one idea
The Herd Mentality
Fear of a temporary decline
Or more accurately stated – Speculating when you think your are Investing
6. Believing this time is different
Not understanding the difference between Volatility and Risk
7. Timing and Selection
When to be in or out of the market. What investment to own for today.
8. Asset Class Confusion
Investing for Current Yield vs. Total Return