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140 Don’t Make Me Say I Told You So
in their ability to win, and this overconfidence is what drives
people to make a number of bad investment choices.
Even when investors are educated and informed, most fail for
a simple reason: they abandon all of their data and information
when things are really good or really bad, and fall prey to the
two most common motivators for the average investor – fear
and greed.
Summary
► It may be a mistake to try to manage your own
retirement investments.
► The average equity investor historically has underper-
formed the stock markets as a whole.
► The average fixed-income investor also had poor results
vs. bond indices.
► Investors often fail because they follow their emotions,
not logic.
1 The AAA Foundation. “Executive Summary Distracted Driving Message
Development and Testing Heart + Mind Strategies Project.” 2011.
Chapter 4: The Most Common Investor Mistakes
