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Section 2

Trying to Do It Yourself

A study by Yankelovich Partners and the Calvert
Group of Mutual Funds showed that two out of three
Please replace this text with chart #123 - Yankelovich.
It's in our shared Dropbox folder.
mutual fund investors could not name a single
company in which their fund held stocks.

For most people, investing your own money is a difficult thing to
do. Before the advent of the Internet, it was difficult for investors
to access the information they needed to make investment

decisions on a timely basis. Now, individual investors have

access to much of the same information that any investment
professional has, and often at the same time.

The issue for individual investors is what they do with that
information. There are studies that show that individual
investors have done worse when investing their own money

than before they had access to all of this information. The

average investor has had returns that are far less than those of
the stock market as a whole over the last 20 years. In fact, it
was less than half of what they would have had if they simply

invested in an S&P 500 index fund and never touched it.

Chapter 4: The Most Common Investor Mistakes