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How to Avoid--and Profit From--Common Behavioral Mistakes

Investors can boost their outcome by resisting behavioral pitfalls, avoiding hyped stocks, and looking for underappreciated signals, says Fuller & Thaler director of research Raife Giovinazzo.


Stipp: Raife, I'd like to get some ideas for individual investors on how they can avoid some of the mistakes that your fund seeks to profit from. What kinds of guardrails can they put up so they aren't making these mistakes?

Giovinazzo: So I would say there are two areas in which individual investors can apply some of the behavioral finance lessons. One is in their portfolio, and the second is in their trading.

Jason Stipp does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.