• / Free eNewsletters & Magazine
  • / My Account
Home>Practice Management>Practice Builder>5 Biases of 'Accumulator' Clients

Related Content

  1. Videos
  2. Articles
  1. Yacktman: Stocks Still Attractive Relative to Bonds

    Equities may not be significantly undervalued but still look good relative to the paltry returns available in the fixed-income market, says Don Yacktman.

  2. Give Your Portfolio a Checkup

    Morningstar's Christine Benz shows you how to uncover portfolio strengths and weaknesses, determine the impact of market movements on your asset mix, and more.

  3. The Friday Five

    Five stats from the market and the stories behind them. This week: A fake tweet's 140-point implications, Apple's $100 billion back to shareholders, and P&G's $10 billion uphill climb.

  4. Top Picks From Morningstar's Strategists

    Morningstar investment experts Russ Kinnel, Matt Coffina, Josh Peters, and Sam Lee answer viewer questions about the current market and the best opportunities in stocks, funds, and ETFs today.

5 Biases of 'Accumulator' Clients

Overconfidence and illusions of control, among other issues, can complicate the investing lives of accumulator-type clients.

Michael M. Pompian, 12/18/2014

This month's article is the 12th in a series called "Deep Dives into Behavioral Investor Types." This series is intended to help advisors create better relationships with their clients by deeply understanding the type of person they are dealing with from a financial perspective and adjusting their advisory approach to each type of client.

As we learned in the last series, there are four behavioral investor types (BITs): the Preserver, the Follower, the Independent, and the Accumulator. If you missed any of these articles, you can find them in my MorningstarAdvisor.com archive.

We will discuss each BIT in a series of three articles:

Part I will be a diagnosis of each BIT and discussion of its general characteristics.

Part II will be a deep dive into the biases of each BIT.

Part III will cover how to create a portfolio for each BIT.

This article is Part II of the Accumulator BIT. (Click here to see Part I.)

A Deep Dive on the Accumulator
The biases of Accumulators tend to be emotional--relating to how people feel--rather than focusing on cognitive aspects--relating to how they think. The biases of the Accumulator BIT are overconfidence, illusion of control, affinity, self-control, and outcome.

The author is a freelance contributor to MorningstarAdvisor.com. The views expressed in this article may or may not reflect the views of Morningstar.

blog comments powered by Disqus
Upcoming Events
Conferences
Webinars

©2014 Morningstar Advisor. All right reserved.