By Kris Sayce – Port Phillip Insider (Australia) –
Investors think they know the type of investor that they are.
Ask any investor whether they’re a conservative investor or an aggressive investor, and it likely won’t take long for them to reply.
They’ll have a pretty good hunch of what they are.
However, our bet is that while many investors have a clear perception about the type of investor they think they are, the reality is that their investment decisions probably don’t match their perception.
We’re pretty sure this is true, due to the investment choices people make.
For instance, many investors will claim they’re conservative…only to then invest 80–90% of their investable wealth in half a dozen or so big, blue chip Aussie stocks.
The same big, blue chip Aussie stocks mind you, which fell 50% during the financial meltdown in 2008 and 2009…and which many of the same investors then sold at the bottom or near the bottom.