Volume 3:

Three Emotional Pitfalls in Long-Term Equity Investing

This seminar contains:

 

  • A thousand-word, bulletized essay on the twelve hallmarks of all truly effective seminars.
  • A user’s guide to this specific seminar, clearly highlighting its essential points, and enabling you to edit/update it at will, or as your compliance function requires.
  • The draft seminar itself – a total of twenty slides – with a bulletized script of the key points you’ll wish to make as you speak to each slide.

What this seminar is for:

  • Investors are often their own worst enemies, behaviorally. Our essentially behavioral advice to them is of great value. But this is a fairly tricky conversation to start. This seminar very gently and empathetically starts it.
    1. Its main idea: Many destructive behavioral impulses are normal, natural and, above all, human. We all feel these things.
      1. The Three Pitfalls:
        1. We feel the pain of market declines twice as much as we enjoy market advances.
        2. We fly from market declines instead of experiencing them as opportunities to invest when quality equities are “on sale.”
        3. When fear strikes, we lose the ability to distinguish between temporary decline and permanent loss. (“This time it’s different.”)
      2. The seminar’s conclusion: An advisor’s most important and most valuable function is to guide clients past these pitfalls.