Behaviour gap

In our last two posts, we discussed about why understanding psychology is important for investor success. Links to both the posts are given below for a quick reference.

  1. Why understanding investor psychology is important
  2. Why understanding investor psychology is important – 2

In many cases, one observes that what the investor takes home is far less than what the investment avenue generates. Nick Murray and Carl Richards call it the “Behaviour Gap” – a wonderful term coined to explain the role of human behaviour in taking financial decisions. The “gap” in behaviour gap pertains to the negative impact of the human behaviour on investment returns.

#RidingTheRollerCoaster – 248

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