Learning to invest
Headline: INVESTMENT: Four quick investment lessons
First two paragraphs:
March 18, 2014 by Finweek Staff Leave a Comment
Given the recent market events, such as the weakening rand, it is becoming even more vital for investors to understand that their investment portfolios are not only influenced by market movements, but also by their own actions.
This is according to Dave Mohr, Chief Investment Strategist for Old Mutual Wealth, who points out four simple, yet very valuable, investment lessons from recent market developments.
Four very simple investment lessons:?
- Investors should be mindful of behavioural finance ? the various cognitive biases that impact the way individuals invest. "One particular bias, called 'anchoring', results in people basing decisions on an 'anchor', which refers to the most recent event or frame of reference to which they hold value. This 'anchor' influences their decision and is used as logic to make judgement calls."