How to Advise 'Open' Investors
Contributor Michael Pompian offers ideas for working with this personality type.
This is the final article in a series focusing on the Big Five personality traits and how they relate to the behavioral biases of investors. Over the years, I have followed a debate between the effectiveness of the Myers-Briggs test versus another widely used personality test, the Big Five. More recently, the debate has intensified. I decided to conduct a study of the Big Five. I studied 121 investors, examining the relationship between the Big Five and investor biases. Why? Because taking the time to understand the underlying personality of the investor leads to better advice and results.
This month's article provides advice on dealing with investors high in openness, the subject of last month's article.