Market returns are secondary to this return driver
In my investment strategy, I focus on what I can control.
I can control the amount of risk I take in my portfolio. I can minimise my transaction costs and fees. I can control my behaviour. Controlling my behaviour leads to lower transaction costs and better tax outcomes. It is a virtuous cycle.
In an article I wrote on long-term equity market returns, poor behaviour was one of the largest detractors of total returns for investors. For this week’s column, I look at some of the most common behaviours that puts investors on the back foot and how you can reduce the likelihood of falling prey.
Overcoming FOMO
Part of human nature is our desire to avoid missing out on the returns that others are getting. When markets are going up, we want…
