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Avoid bad investment moves that even rich investors will make
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The bottom line is, whether you’re an ordinary investor or a billionaire, even modest mistakes can lead to monumentally bad outcomes.
PHOTO: REUTERS
Barry Ritholtz
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Decades as an investor and trader on Wall Street have taught me that market panics come and go. Geopolitics, inflation and profit warnings, among other variables, can make a mess of things – and the ensuing volatility often fuels our urge to make a decision, any decision. Especially the bad kind.
How investors respond to market turmoil is, of course, what behavioural finance is all about. And, just like in baseball, what you want to avoid are unforced errors, which have a tendency to contribute to long-term financial harm.
