Ingram discussed research that supports his assertion and advised on what investors should do about it.
A study by JP Morgan Asset Management shows that almost every type of major asset performed better than the average unit trust investor in the US from 1999 to 2018.
In fact, over the last 20 years, the average investor will earn half the return of a balanced portfolio that has 60% in shares and 40% in bonds.
To give this more context; if you had invested $100 000 in 1999 in offshore unit trusts, it is likely you would now have $145 000 – this is below inflation!
If you had merely selected a portfolio that had 60% in shares and 40% in bonds and you kept this allocation, you would now have $275 000.
The investment industry does not work for the average investor; we need to find ways to be better than average in future.
Finding an asset mix and sticking to it is such a simple idea.
It’s straightforward to implement, but most investors find it near-impossible to stick to this strategy.
We can blame asset managers, advisors, Trump and everyone else, warned Ingram, but the reality is that we are our own worst enemies.
For more detail listen to the interview in the audio below (and scroll down for quotes from it).
It [being terrible at investing] has so much to do with emotions and very little to do with our ability to think rationally…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Women tend to act slower… which means they’re better investors than men…— Warren Ingram, Personal Financial Advisor - Galileo Capital
It [investing driven by emotion] is not unique to South Africa…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Get your asset mix right. Then be very cautious about changing…— Warren Ingram, Personal Financial Advisor - Galileo Capital
The message to advisors… The conversations you are having with your clients are fundamentally wrong… Spend a lot of time learning how to deal with your clients’ emotions… Understand they’re deeply fearful… Get them out of that lizard brain thinking…— Warren Ingram, Personal Financial Advisor - Galileo Capital
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
Recommendedby NEWSROOM AI
The Advertising Regulatory Board (ARB) has ordered the investment group to withdraw an ad that "disparages" its competitors.
CEO at the Tourism Business Council of SA Tshifhiwa Tshivhengwa says they are looking to find a lasting solution.
CEO at Curro Holdings Andries Greyling explains how the company has manged to sustain good growth.
The former deputy finance minister details some of the contents of his book 'After Dawn: Hope after state capture'.
The World is both safer and more dangerous than it has ever been and these weapons could end human life on the planet.
Bruce Whitfield speaks to director at Africa House Paul Runge.
The National Credit Amendment Bill aims to help indebted consumers earning less that R7,500 per month, restructure their debt.
Daily Maverick's Mantshantsha says the country has been waiting a long time for the economy to be turned around.
Mail & Guardian investigative editor Thanduxolo Jika unpacks the Public Protector's legal battles.
Joint law enforcement operation after visitors in Cape Town complained of being coerced into paying R50 to park on the street.
Stolen from her mother's bedside as a newborn 22 years ago, Zephany or Miché Solomon as she is now known, tells her story.
The designer and businesswoman passed away on Wednesday night following a brief illness, her company confirmed.
The 22-year-old, known now as Miche Solomon will be talking to John Maytham live on Cape Talk on Thursday 15 August at 4pm.