Posts Tagged ‘herd’

“Research firm Dalbar publishes an annual study on investor behavior called the Quantitative Analysis of Investor Behavior (“QAIB”).  Every year since 1994, the QAIB has compared stock market returns over the previous decades with returns earned by real investors.  The result is always the same: The market beats the investor.

For the 30 years ended December 31, 2015, the S&P 500 returned 10.4% per year, on average.  Equity mutual fund investors earned an average return of just 3.7% per year.

To make plenty of money in stocks, you must behave better than the vast herd of investors.  A single behavior – refusing to sell at market bottoms – would have multiplied profits nearly tenfold.” -Dan Ferris

“Being liked has consequences.  You start compromising.  You stop taking risks.  You follow the herd.” -James Altucher

Homework Mentality

Posted: February 24, 2015 in Money Matters
Tags: , , ,

“Rich people: 1. Do their homework. They understand their investments, and 2. They avoid the herd mentality.” -Van Simmons, David Hall