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[ SINS ]
Human weaknesses cited in early Christian teachings are still
behind many of the biggest mistakes made by investors today,
writes Danielle Levy
The seven deadly sins
I
t’s tough for anyone
to recognise their own
shortcomings – and the world
of investing is no different.
However, investors face a key
challenge: behavioural traits and
mistakes are often laid bare when you
check your portfolio’s performance.
The numbers are plain to see.
It is then a question of whether you
are willing to assess what has worked
and what hasn’t. What’s more, it is
important to ask yourself whether
there are any behavioural traits that
are responsible for these mistakes.
The seven deadly sins, which
were formulated in early Christian
teachings, aptly describe some of
the most common mistakes that
investors make with their portfolios.
“All the sins bleed into one another,
but the crux of all of these unholies
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is ego. Once your ego creeps into
your decision-making, it’s a one-
way ticket to Doomsville,” explains
David Coombs, head of multi-asset
investments at Rathbones.
“Your judgment is skewed and it’s
no longer about the objective, it’s
about you.”
So how can the seven deadly sins
hurt your portfolio?
“All the sins bleed into one
another, but the crux of all
of these unholies is ego.
Once your ego creeps into
your decision-making,
it’s a one-way ticket to
Doomsville”
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