As a species, humans are woefully ill-equipped to be successful with their finances.
Thousand of years of evolution on the savannah have given us a host of instincts that kept us alive. Those same instincts have a tendency to trip us up when it comes to financial decisions. The list is long and illustrious and includes stunners such as:
I participate in a variety of forums with other advisors. Occasionally there is a question, “Should I buy the stock of X company?” The usual response from advisors is to forgo individual stock investments and concentrate on building a low cost, diversified portfolio of mutual funds or ETFs. It’s good advice. It’s also advice I give my clients.
But I have an additional thought: You should buy that stock.
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