I recently learned of an investor who experienced a catastrophic portfolio wipe-out in the past several months. This podcast (6:03) relates some four lessons that advisors can learn, or re-learn, internalize and use to help clients regarding the distinction between gambling and investing; between diversified vs. concentrated risk; the difficulty of analyzing investments; and the hazards of data. We conclude that advisors can act as a restraint on investors who, left alone, can and do end up harming themselves.
