FYI: When discussing the behavioural foibles that impact our investment decision making, it is often stressed that these issues also affect professional investors – seemingly in an effort to allay any notion that expertise insulates them from such issues. Whilst it is certainly true to state that professionals are not invulnerable, this does not go far enough. If we think about some of the main challenges encountered by investors around issues such as time horizons, over-trading, overconfidence, misaligned incentives and benchmark obsession, these problems are often exacerbated when investing in a professional context. Amateur investors* therefore have a number of behavioural advantages:
Regards,
Ted
https://behaviouralinvestment.com/2019/04/16/ten-behavioural-advantages-amateur-investors-hold-over-professionals/
