By Andrew DePietro
Admiring others’ financial successes is one thing. Envy, on the other hand, can easily put your investments at risk. Jealous of fellow investors’ boons, individuals often attempt to duplicate the results with little success. Unfortunately, one person’s strategy doesn’t always fit another’s life circumstances or monetary constraints.
According to Ronn Yaish, managing partner at Yaish Financial Services, investors often hear stories from friends, family members or co-workers about their latest investment scores. “The investor comes home after hours of festering and second guessing his investment plan and leaves dramatic communication for the advisor to call first thing about something urgent,” Yaish said.
The investor then tells his financial advisor to copy a friend’s investment, even if it doesn’t make sense. Unsurprisingly, this tactic leads to losses and reinforces poor investing behavior.
Copying an investor’s strategy is one matter, but keeping an eye on the competition is another.
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