Lou Melone

Focus. We’ve all been told this at some point in our lives, but how does it relate to long-term investor success? How can this one word potentially provide a lifetime of retirement bliss (as you define it), or a possible lifetime of headaches?

“This time is Different.” These could possibly be the most expensive four words spoken — or mumbled — by an investor.

In a prior article titled, “Investor Behavior…One of the Real Risks” (May/June 2010), I had referenced a chart that tracked the monies of investors — they either added to equity funds each year since 1997, or pulled it out.

There is a widely held misconception in investors' minds (most likely drilled in by the financial media) that market volatility — the current roller coaster ride — always equals market risk.

Have you every questioned (in your mind) the so-called “expert business coaches” — those individuals who have written numerous books on what you need to do in order to improve your business, yet never seem to have run one themselves?

The American investor wants to feel as though they have all the available resources at their fingertips instantaneously.

Author Nick Murray once said (and continually trumpets): “The dominant determinant of real- life, long-term investment outcomes is not investment performance; it is investor behavior.”

Gratification is brought on by discipline and hard work.

Have you ever been confused as to your advisor’s credentials, how they were attained, or what criteria were used to get the “alphabet soup” you find in the financial industry?

A solid business plan can’t just sit on the shelf.