Preventing Emotional Investing: An Added Value of an Investment Advisor

Journal of Wealth Management, Spring 2011, Forthcoming

NYU Poly Research Paper

https://doi.org/10.3905/jwm.2011.13.4.034

Posted: 6 Nov 2019

See all articles by Philip Maymin

Philip Maymin

Fairfield University - Charles F. Dolan School of Business

Gregg S. Fisher

Fisher Family Ventures

Date Written: September 10, 2010

Abstract

We analyze a unique, comprehensive, multi-decade dataset of all communications with clients by a boutique investment advisory and investment management firm to explore the behavior of individuals involved in financial decision making. We propose and test a theory of self-regulation to explain both the appeal and the value of investment managers to individual investors, and we find that all of the predictions of the theory are borne out by the data. In short, our unique dataset allows us to provide evidence that an important service provided by investment advisors, and apparently desired by individual investors, is the barrier the advisor provides to prevent the individual from aggressively trading and thereby losing money.

Keywords: behavioral, investment advisor, individual investors, trading

JEL Classification: G23, G11, G2, G14

Suggested Citation

Maymin, Philip and Fisher, Gregg S., Preventing Emotional Investing: An Added Value of an Investment Advisor (September 10, 2010). Journal of Wealth Management, Spring 2011, Forthcoming; NYU Poly Research Paper ; https://doi.org/10.3905/jwm.2011.13.4.034. Available at SSRN: https://ssrn.com/abstract=1675187

Philip Maymin (Contact Author)

Fairfield University - Charles F. Dolan School of Business ( email )

N. Benson Road
Fairfield, CT 06824
United States

Gregg S. Fisher

Fisher Family Ventures ( email )

1120 Avenue of the Americas, 4th Floor
New York, NY 10036
United States
2127960707 (Phone)

HOME PAGE: http://www.fisherfamilyventures.com

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