April 29, 2015
Ironically, many investors make mistakes because they're trying to beat the market, and more importantly, because they think they can, says Harold Evensky, chairman of Evensky & Katz wealth management firm and professor of practice at Texas Tech University.
At speaking engagements or lectures, Evensky often asks his audience to raise hands if they think their children or grandchildren are better than average. Typically, everyone does. "Statistically, that can't be," Evensky says. "But it's classic behavior. People don't like the idea of being average."