! Managing the Mental Aspect of Investing
Meir Statman is a Glenn Klimek professor of finance at Santa Clara University, Santa Clara, California. His latest book is "Finance for Normal People: How Investors and Markets Behave" (Oxford University Press, 2017).


John from AZ posted over 6 years ago:

Gentleman brings things into perspective!

Donald from MI posted over 6 years ago:

I thought this was a great article..now I need to find out what managed payout funds at Fid./Vang. are??

Charles from IL posted over 6 years ago:

Very thought provoking article with lots of
real life examples.

Cecile from CA posted over 6 years ago:

Interesting article reflects many of my ideas of investing. Will also look up managed payout funds.

Walter from NJ posted over 6 years ago:

I have the tendency to relish the gains and kick myself for the losses. This puts the psychology in perspective.

Bob from CA posted over 6 years ago:

What if your losses are in a Roth account and not available to offset poential gains?

Dewey from TX posted over 6 years ago:

Perhaps the best interview I've had the pleasure of reading. Salute' Meir Statman.

We should realize the best total return lies in taxable accounts. 'Wish I had realized that years ago!

Larry from FL posted over 6 years ago:

I am picky about what I read...I read this one; very substantive.

Ed from MD posted over 6 years ago:

Very little of this article applies to those of us managing a self-directed IRA. Surely, Mr. Statman does not recommend the almost universal "buy and hold" strategy that financial advisors lazily use to get their 2% commission. He almost admits that the layman has no chance against his ilk, the insiders, big brokerages and high frequency traders. Check out Buffets extremely advantages terms when he "loaned" BAC $5 billion as a example. Dilution of common stock, anyone? AAII would serve its members better by not publishing generic pablum that can't be contested. Doubt that? Pick one thing that irritates you and submit a complaint to the SEC, CME or CFTC. Then, do the same thing you do when you buy a stock that looks good. Hold your breath and hope.

Richard from IL posted over 6 years ago:

Yes, a trader is not the same as an investor. As an investor, be diversified (with cash as part of allocation) and wait til the herd is panic selling to purchase undervalued assets. Sell them a few years later when everyone is optimistic and enjoy the rewards.

Marvin from IL posted over 6 years ago:

I think the article is very thought provoking and i will use his recommendation on not taking credit for gains and shrug my shoulders when I have losses rather than holding them until they return to profitability, which may never happen as we all know.

William Vogel from AL posted over 5 years ago:

actually one ofthe best i have read

Steven Duncan from NY posted over 5 years ago:

I read this article last year and enjoyed it.
I read it again a year later, this time I took notes! Great insights such as: So why are you trading when Goldman Sachs might be on the other side of the trade? Remember there is an idiot in every trade, and if you do not know who it is, it is likely you. A great article to revisit once a year!

Les from MD posted over 4 years ago:

A good read. I liked the tennis court example and that Goldman might be on the other side of the trade and one of us is an idiot. Very thoutht provoking.

Ronald Gilbert from CA posted over 4 years ago:

Goldman usually wins---GIL

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