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Meir Statman: Chicago Tribune : Learning from Financial Mistakes
Friday, Mar. 4, 2011
Meir Statman, Glenn Klimek Professor of Finance, is one of the finance professionals highlighted in the Chicago Tribune article “The Pros Show How They Learned from Their Mistakes.”
The article’s author compiled a list of today’s leading money minds to contribute stories of their investment mistakes so readers could see that everybody struggles to become a successful investor, even those who are now pros.
According to the article, Statman thought that he could outsmart the stock market in the 1980s, and he invested in three lowly-regarded companies, his theory being that these out of favor companies would provide investors with the highest rate of return.
What he discovered was that oftentimes dog stocks are dog stocks for a reason. All three of his stocks were unsuccessful. The lesson learned from this experience is that it is wise to diversify and invest in a broad array of stocks because it is difficult to single out market winners and losers.
Read the full Chicago Tribune article here >>