Common Sense In Investing: An Uncommon Trait

Jun 2014

While the common sense risks of hitchhiking may seem obvious, one interesting thing about investing is that common sense isn’t necessarily all that common.  Indeed, some seemingly riskier investments have historically not proved to be particularly risky, while some seemingly safer investments have proved to be quite risky to an investor’s financial health … Experience suggests that the primary reason investors make ill-suited choices is that they typically act on perceived risks or safety, not actual risks or safety.