Transcript of the podcast:
After you listen
- To learn more about Schwab's perspective on the fundamentals you need for investing success, visit schwab.com/principles. The first of our seven investing principles is to establish a financial plan based on your goals.
- You can also talk to Schwab about your portfolio performance. Call us at 800-355-2162 or visit a branch near you.
What's an acceptable level of performance for your portfolio? Before you can answer that question, you first have to be sure you’re calculating your returns correctly. Even professionals get it wrong sometimes. In this episode, Mark examines how the availability heuristic and confirmation bias could affect your ability to make the best decisions with your portfolio.
- You can read more about the Beardstown Ladies Investment Club and how they miscalculated in this article.
- To understand more about how CalPERS projected future returns, see this story in the LA Times.
- A study titled "Why Inexperienced Investors Do Not Learn: They Do Not Know Their Past Portfolio Performance" shows how behavioral mistakes influence investors of all experience levels when it comes to calculating their portfolio performance.
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Financial Decoder is an original podcast from Charles Schwab.
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