Greenstream

Investor Risk: Behavioral Biases That Can Cost Investors Returns


Listen Later

Investment returns are expected, not promised. To capture them, investors should both intelligently take risks and stick around for the return. In episode 16 of Greenstream, we break down the psychological and behavioral biases that can hold us back. Investors should view these as penalties or unforced errors that make winning your game harder.

You'll learn:

  • What we believe to be biases and how they manifest themselves in portfolios
  • Why diversification, patience, and tax discipline matter more than you might think
  • How the Stockdale Paradox provides a framework for long-term resilience
  •  

    Subscribe for Email Updates: https://greenspringadvisors.com/greenstream-podcast

    Follow on Apple Podcasts: https://podcasts.apple.com/us/podcast/greenstream/id1795467982

    Follow on Spotify: https://open.spotify.com/show/26NYX6WD7godcJAYVE0Yk8?si=Qxj-H7HiRdGmbNlW8uuV9g

    Meet with Pat & Marcus: https://outlook.office365.com/book/MarcusCalendaratGreenspringAdvisors@Greenspringos33.onmicrosoft.com

     

    Sources:

    1 Are Financial Advisors Worth Their Fee? | Greenstream #13 https://youtu.be/Is7N5M4e4Ck

    2 Investment Risk Explained: How Much Diversification Do You Need? | Greenstream #15 https://youtu.be/yEqRrXDAe7A

    3 Barberis, Nicholas and Barberis, Nicholas and Thaler, Richard H., A Survey of Behavioral Finance (2002). https://ssrn.com/abstract=327880

    4 Barber, Brad M. and Odean, Terrance, Boys Will Be Boys: Gender, Overconfidence, and Common Stock Investment (1998). https://ssrn.com/abstract=139415

    5 Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. https://ssrn.com/abstract=219228

    6 Odean, Terrance, Do Investors Trade Too Much? (1998). https://ssrn.com/abstract=94143

    7 Collins, Jim, The Stockdale Paradox. https://www.jimcollins.com/concepts/Stockdale-Concept.html 

    ...more
    View all episodesView all episodes
    Download on the App Store

    GreenstreamBy Greenspring Advisors