Buying Stocks Is Easy. Selling is Hard.

A recent study suggests that blindfolded monkeys might be able to do a better job choosing stocks than the average institutional investor—with the caveat that the monkeys are “given the darts when it’s time to sell holdings, not when deciding what to buy.” This according to an article in Bloomberg. The study, which evaluated more than 4 million trades in 783 portfolios from 2000 to 2016, found that stockpickers possess skill on the buy side… Read More

How the Brain Handles Buying and Selling

We’ve written often about the role that human behavior plays in investing. While logic and reason are contributing factors, emotions hardly take a back seat. In a recent issue of Enterprising Investor, Shreenivas Kunte, CFA, shares some perspective on the different degrees to which buying and selling take an emotional toll on the investor. Human emotions, Kunte explains, originate in our “reptilian”, or less-evolved brains. We are hard wired to avoid the negative and seek… Read More