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With the dawn of the new decade, I felt it was an opportune time to continue this Investment Sins series. I last left off with Anger/Wrath and now the next in line is “Gluttony”. Gluttony is defined as greed personified, and is basically an extreme case of wanting to eat more and more, even when one ceases to be hungry. A glutton will also eat for the sake of eating, which brings me to the description of this investment sin. Note: All these investment sins are described from the book “The 7 Deadly Sins of Investing” by Maury Fertig, which can be found in all good bookstores.
Signs of an Investor Afflicted by Gluttony
The book illustrates four examples of investors who are afflicted by gluttony. Are you afflicted as well? The four signs are described below:-
1) Buying in the worst possible markets
Normally, the correct mindset for an investor to adopt is to buy in plunging markets and sell in markets which are soaring on hope and optimism. Investing gluttons, however, buy indiscriminately and without doing proper due diligence or research. So it’s akin to throwing darts on a dartboard to try to pick those few winners. These people also like to take a small piece of positive information to justify a BUY, even though it may just appear to glitter like gold on the surface and have no substance within.
2) Viewing their investing with false optimism
Gluttons are great deceivers, of themselves! They tend to perceive everything positively, and remember their winners best while conveniently forgetting their losers. These are the guys who tend to claim they make money whenever they are at a cocktail party; of course this is simply the result of selective amnesia. Read more...[caption id="attachment_2965" align="alignright" width="150" caption="Photo by Anonymous9000"][/caption]
With the dawn of the new decade, I felt it was an opportune time to continue this Investment Sins series. I last left off with Anger/Wrath and now the next in line is “Gluttony”. Gluttony is defined as greed personified, and is basically an extreme case of wanting to eat more and more, even when one ceases to be hungry. A glutton will also eat for the sake of eating, which brings me to the description of this investment sin. Note: All these investment sins are described from the book “The 7 Deadly Sins of Investing” by Maury Fertig, which can be found in all good bookstores.
Signs of an Investor Afflicted by Gluttony
The book illustrates four examples of investors who are afflicted by gluttony. Are you afflicted as well? The four signs are described below:-
1) Buying in the worst possible markets
Normally, the correct mindset for an investor to adopt is to buy in plunging markets and sell in markets which are soaring on hope and optimism. Investing gluttons, however, buy indiscriminately and without doing proper due diligence or research. So it’s akin to throwing darts on a dartboard to try to pick those few winners. These people also like to take a small piece of positive information to justify a BUY, even though it may just appear to glitter like gold on the surface and have no substance within.
2) Viewing their investing with false optimism
Gluttons are great deceivers, of themselves! They tend to perceive everything positively, and remember their winners best while conveniently forgetting their losers. These are the guys who tend to claim they make money whenever they are at a cocktail party; of course this is simply the result of selective amnesia. Read more...
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With the dawn of the new decade, I felt it was an opportune time to continue this Investment Sins series. I last left off with Anger/Wrath and now the next in line is “Gluttony”. Gluttony is defined as greed personified, and is basically an extreme case of wanting to eat more and more, even when one ceases to be hungry. A glutton will also eat for the sake of eating, which brings me to the description of this investment sin. Note: All these investment sins are described from the book “The 7 Deadly Sins of Investing” by Maury Fertig, which can be found in all good bookstores.
Signs of an Investor Afflicted by Gluttony
The book illustrates four examples of investors who are afflicted by gluttony. Are you afflicted as well? The four signs are described below:-
1) Buying in the worst possible markets
Normally, the correct mindset for an investor to adopt is to buy in plunging markets and sell in markets which are soaring on hope and optimism. Investing gluttons, however, buy indiscriminately and without doing proper due diligence or research. So it’s akin to throwing darts on a dartboard to try to pick those few winners. These people also like to take a small piece of positive information to justify a BUY, even though it may just appear to glitter like gold on the surface and have no substance within.
2) Viewing their investing with false optimism
Gluttons are great deceivers, of themselves! They tend to perceive everything positively, and remember their winners best while conveniently forgetting their losers. These are the guys who tend to claim they make money whenever they are at a cocktail party; of course this is simply the result of selective amnesia. Read more...
