Haghani Says Retail Investors Face Tough Odds Picking Stocks

Elm Wealth founder Victor Haghani said retail investors trying to beat the market through stock picking face persistent behavioral biases and a tough trading environment, making broad index exposure a better fit for many. Haghani, Elm Wealth’s founder and chief investment officer and a founding partner of Long-Term Capital Management, said investors can treat recent returns as evidence that a trend will continue. He calls that tendency extrapolation bias. “I’m not sure that investors are that much more sophisticated than they were 30 years ago,” Haghani said.

Source: TokenPost