Terry Smith's Fundsmith beat the market for a decade, then trailed four straight years. £3.31bn fled in 2024. Most investors lost money vs a tracker. Why? Timing. They bought high after stellar returns, sold low during underperformance. Jack Bogle's iron law: money arrives after gains, leaves during losses. Even star managers can't beat that.
Confirmation bias in financial advice can lead people to seek validation rather than objective guidance. New research shows investors often choose advisers who confirm their preferences, boosting confidence but not decision quality. Recognising this bias helps protect long-term outcomes and highlights the value of evidence-based, objective advice.
TEBI
Aug 197 min read
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