Compounded annual returns are the crack of the investment world. Wall Street is the pusher and investors are the addicts. Investment companies and investors focus on the annual return metric as the most important in a portfolio to the long term detriment of most investors. This myopic focus on annual Read more…
Today I wanted to touch on another common behavioral issue that most investors fall prey to, anchoring. I’ve commented previously on the behavior gap, how behavioral issues lead to investor under performance and specifically how more information often leads to worse investment performance. Anchoring is another behavioral pitfall for investors. Read more…
**Image by Carl Richards, Buck’s Blog at the NYT. Check out the blog for more simple yet powerful investment messages. Behavior dominates investor under performance. As the simple yet powerful chart above so nicely illustrates investor returns are lower than the very investment classes they are invested in regardless of Read more…