You are not alone either.
According to the investment research firm Dalbar, individual investors have earned far less than they would have just by just owning an index fund.
We don’t keep up in good markets and lose much more than we should in bad markets.
The hard wiring of our brain makes it difficult to just do the things necessary to earn average returns, much less beat the overall markets rate of return.
Even in the greatest mutual fund of all-time, investors actually found a way to lose money, while doing nothing would have made them rich.
We are programmed for the fear-and-greed cycle.
We buy too much when markets are rising. Then when we see prices falling, we rush to sell.
We do the same things everyone else is doing and yet somehow expect different results.
Like flies to sugar, we get too excited by stories, tips, and the rush from hot-to-not stocks.
Instead, we need to ask ourselves what the wealthy do to make more than the average investor.
Every year there are a handful of shareholder letters that I urge people to read and at the top of the list is the letter from Jamie Dimon, the CEO of JP Morgan (JPM).
I know a lot of folks don’t.
If you are living a life, running a business, building a career, have a family, grandkids and all that comes with living… who has time for that?
I understand that, so since I read it as part of my job I will go ahead and break it down for you.
Some of you may be wondering why I care what Jamie Dimon thinks at all. After all, I do my own thing, have my own rules, and don’t pay a lot of attention to day to day news flow – all true.
However, Mr. Dimon runs the largest bank in the United States and the 6th largest in the world. They are growing their footprint by entering nine new markets this year alone. By 2022 they will be in 93% of all US markets.
On top of that, they are the number 1 ranked investment bank in the world today.
What they do influences markets and economies, so in my opinion, it’s just smart to know what the folks at JP Morgan think at a given moment in time.