Basing investment decisions on personal experiences can lead to several potential pitfalls. Firstly, it can lead to a narrow perspective as one's personal experiences only represent a small fraction of the overall market. This can result in missed opportunities or misjudged risks. Secondly, personal experiences can be influenced by luck and unique circumstances that may not be replicable. Lastly, personal experiences can lead to emotional decision-making, which can cloud judgement and lead to poor investment decisions.
How should investors manage the inevitabilities of risk? What are the most powerful wealth-building...
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