Why The Average Investor Doesn’t Match The Average

Average InvestorNow and again I like to rummage into the academic tomes of finance. Today I give you a paper by Philip Maymin and Greg Fisher.  It looks into how the “performance of the average investor in an asset class lags the average performance of the asset class itself by an average of one percent per year over the past fifteen years.”

Given how people love to chase returns this is not entirely surprising. But it’s good to have some data to back up intuition.

You can dip into the paper over here.