Estee Advisor’s Webinar on Behavioural Investing : The Key to Growing your Wealth
A recent study by J.P. Morgan revealed a stark reality: the average investor has achieved a mere 3.6% in returns over the past two decades. This pales in comparison to the robust 9.5% annual returns of the S&P 500 and the 7.4% returns of the 60/40 portfolio. Can you fathom such a significant underperformance compared to benchmark indices?
Another intriguing case worth considering is that of the renowned fund manager Peter Lynch. During his 13-year tenure with the Magellan Fund, he delivered astounding annual returns of 29%, while the S&P managed just about 14%. However, upon Lynch’s retirement, a study examined the returns of individual investors in the fund. One might anticipate substantial gains for these investors, but the reality was quite the opposite.
Shockingly, the average investor in the fund actually incurred losses. Investors tended to flock to the fund following years of exceptional performance, their expectations soaring. Yet, when the fund couldn’t consistently replicate those extraordinary returns, they swiftly exited, repeating this pattern.
What drives this behavior among investors, ultimately leading to a persistent performance gap?
Did you miss Estee Advisor’s Webinar? Fret not! We’ve got you covered. You can find the entire webinar below!
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