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Ben Carlson: How Investors Develop Bad Habits

FYI: One of the hardest parts about investing is that prudent advice doesn’t always work. Risk management doesn’t always add value. Legitimate strategies can go long stretches where they don’t work very well. Diversification means you’ll always hate something in your portfolio. Junk stocks can outperform high quality companies depending on the starting prices and valuations.
Regards,
Ted
http://awealthofcommonsense.com/2016/11/how-investors-develop-bad-habits/

Comments

  • In my experience, bad habits first are a result of not understanding the drivers of investment returns. Those bad habits can be fixed through training. The difficult-to-fix habits are the ones caused by behavioral bias and heuristics.

    Nick de Peyster
    http://undervaluedstocks.info/
  • @Nick:: I hope your making a large contribution to MFO in order tho plug your website undervaluestocks. com
    Regards,
    ted
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