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South Carolina Business Review Interview
When it comes to investing in stocks and bonds, have you ever given any thought as to your personal investment philosophy or behavior? I recently had the privilege of being interviewed by Mike Switzer on the South Carolina Business Review.
The South Carolina Business Review focuses on news from South Carolina’s business community with interviews of many small business owners and business leaders from around the state. To hear the full five minute interview, click to go to the South Carolina Public Radio website.
Investors, broadly speaking, fall into one of three categories:
- Rational Investors- based on Harry Markowitz’s Rational Man theory;
- Irrational Investors- based on behavioral finance which says man is emotional and biased;
- A mixture of 1 and 2.
Advisors Are Humans TooFinancial advisors have the same emotions and biases as their clients. Click To Tweet
By understanding the psychological makeup of humans, advisors may be able to better communicate and coach investors to stick to the long-term goals and plans. The problem is that advisors are also humans who have the same emotions and biases as their clients do. We must first understand ourselves, before we can help others… Intelligent Investing believes in behavioral coaching and has three pillars of financial thought that guide our philosophy…traditional finance, behavioral finance, and values-based finance.