At one point or another, even the most seasoned and experienced investors have made bad investment decisions.
Whether you heard about a hot stock or crypto and “bought the top” before a big plunge… or you held on to a big gain too long and watched your profits wither away… Fear likely played a role in your decision.
You see, the emotional roller coaster ride shakes many investors out of the market. They buy at tops and sell at bottoms…
This is the main reason the average investor severely underperforms the market. They have incredibly bad timing.
In fact, one study shows that profiting from the market is less about what you buy and more about when you buy and how long you hold.
So Easy a Baby Could Do It
The study – called “Selling Fast and Buying Slow” and authored by professors from the University of Chicago and Massachusetts Institute of Technology – analyzed the historical performance of 783 portfolios owned by both wealthy and institutional investors (like pension and hedge funds).
To judge the performance of these Wall Street elites, the study compared their results to a portfolio of alternatives randomly selected by a baby.
So no investment knowledge or even the ability to read was needed… just a baby randomly pointing at a screen…
And the results were pretty revealing.