Why Investor Behavior is the Most Important Thing

By Ryan Gilmer, Investment Advisor

Recently in Barron's, Martin Conrad wrote an article explaining why most investors perform poorly when compared to mutual fund returns--because our emotions lead us astray in stressful situations. Our trading decisions are nearly always wrong.

One of the biggest values an investment advisor can add is his ability to keep you from making the same mistakes everyone else is making--mistakes that will no doubt feel like the right thing to do at the time (selling in early 2009).

An investment strategy consisting of disciplined saving and value investing is indeed contrarian in our times.  But it works.  It's been proven to work.

Please read the entire Barron's article here.  For an introduction to value investing, read Warren Buffett's "The Superinvestors of Graham and Doddsville" here.