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.
- Its main idea: Many destructive behavioral impulses are normal, natural and, above all, human. We all feel these things.
- The Three Pitfalls:
- We feel the pain of market declines twice as much as we enjoy market advances.
- We fly from market declines instead of experiencing them as opportunities to invest when quality equities are “on sale.”
- When fear strikes, we lose the ability to distinguish between temporary decline and permanent loss. (“This time it’s different.”)
- The seminar’s conclusion: An advisor’s most important and most valuable function is to guide clients past these pitfalls.
