In the first half of this week’s podcast, Doug meets Jim Rogers, the author of Street Smarts Adventures on the Road and in the Markets. Jim is also an author, investment expert, and financial commentator who has appeared in various publications, including Time, The Washington Post, The New York Times, Forbes, Fortune, and more. Jim tells Doug about investing in commodities and why it is advantageous to invest in what you know. Find out more by listening to this interesting podcast.
Posts Tagged ‘investing’
One of the reasons why many investors fail in their investments is because they are driven by their emotions. This problem is studied by academics who specialize in an area known as behavioral finance.
People make decisions for all sorts of reasons, but when you make an investment decision based on emotion, not fact, you stand to lose your head, heart, and pocketbook.
For example, sometimes investors hear some positive news about a certain stock and they rush to buy it simply because they feel good about it. They haven’t necessarily researched its individual merits, or checked it against their financial plan to see if it fits with their overall investment goals. They just make a sudden investment decision.
Have you ever done that?
Many investors are driven by fear or excitement, and in both cases their surging adrenaline may help them in a “fight or flight” situation, but not with their investment portfolio.
If an investor is too fearful, he could end up either selling a stock needlessly or not developing his investment potential enough. But sometimes investors don’t have enough fear and they become the victims of Ponzi schemes and other scams.
I recently spoke with Professor Meir Statman, author of What Investors Really Want, on the Goldstein on Gelt show, and I asked him why he thought people let their emotions get the better of them. He replied, “People follow their intuition, and their intuition says that they can tell the difference between honest people and dishonest ones. Dishonest people take advantage of precisely that.” (Click here to hear more of what Professor Statman has to say.)
In the ideal world, investors have the time and resources to take a step back from their emotions and properly research financial moves. But in the real world, who has the time, financial background, or desire to educate themselves properly before making rational investment decisions?
What’s the solution for avoiding the pitfalls of emotional investing?
Find an effective and reliable financial planner. A financial planner has the knowledge and background necessary for researching and assessing various investments and finding out which ones are the most appropriate for you and your financial goals. For this reason, it’s worthwhile taking the time and calling your financial planner today.
Having an objective certified professional oversee your investments is the best way to prevent yourself from falling into the trap of emotional investing.
On the first part of this week’s Goldstein on Gelt show, meet Eric Siegel, author of Predictive Analytics: The Power to Predict Who Will Click, Buy, Lie, or Die. Eric tells Doug about data mining and predictive analysis. What do these terms mean, and how accurate are they in determining peoples behavior? Find out how data mining affects marketing and customer profiling, as well as daily life, by listening to this weeks show.
What will the worlds economy be like in 10 years time? On this weeks Goldstein on Gelt podcast, Doug interviews Nobel Prize winner Professor Christopher A. Sims. Professor Sims explains his award-winning theories, for which he received the Nobel Prize for economics in 2011 with Thomas Sargent, and shares his predictions for the worlds economic future. Find out more about Professor Sims’ fascinating economic theories by listening to his interview in Part 1 of the Goldstein on Geltshow.
Meet Joe Carlen, who has written an intriguing biography of Benjamin Graham, the economist who influenced Warren Buffet, Irving Kahn, and other famous financial figures. Carlen, author of The Einstein of Money, and a business consultant himself, speaks to Doug on this weeks episode of the Goldstein on Geltshow about Benjamin Graham and his philosophy. How do Graham’s theories affect investors and the financial world today? Find out by listening to this fascinating interview.
Meet Julie Deane, who managed to fulfill her dreams when she opened The Cambridge Satchel Company. Julie and her mother originally founded the company in order to reach the goal of sending Julie’s children to a good, private school, and they became more successful than they ever imagined. Julie shares with Doug how she managed to run a company from her kitchen at home, eventually getting listed as one of the 100 most influential figures in fashion. Don’t miss this inspiring interview on the Goldstein on Gelt show.
Do you know what motivates your investment decisions? Is there a general rationale behind people’s financial behavior? On this weeks Goldstein on Geltshow, Doug welcomes back Meir Statman, the Glenn Klimek Professor of Finance at the Leavey School of Business, Santa Clara University and Visiting Professor at Tilburg University in the Netherlands. He is also the author of What Investors Really Want. Professor Statman talks about what drives investor behavior and lies behind financial decision-making.