Greed and Investing
Today, I’m linking you to an article I found on the Music Whiz Value Investment Journey Blog , a blog dedicated to tracking a value investor’s journey. Today’s article is about the effects of greed on investment returns.
Article Excerpt (Via Value Investment Journey):
“However, what may not be obvious is that avarice can take different forms and may manifest itself in different ways (through various behaviours). The objective of this post is to highlight the various forms of avarice, how they are demonstrated and how to effectively curb such behaviour and prevent it from ruining our investing lives. First of all, Mr. Fertig’s book points out that greedy investors tend to be unrealistic investors.”
Another consequence of excessive greed is the desire to chase performance, which may result in even poorer performance than if one had just “stayed put”.
Article Summary (via Value Investment Journey):
Personally, I believe that greed will not give me a good outcome; thus I choose to “get rich slowly” instead of gunning for quick, ephemereal gains.