Do you ever feel like the investing advice you get—online and from financial ‘experts’—is overwhelming? Or worse, contradictory? You are not alone if it leaves your head spinning trying to figure out who or what to trust. Fortunately, as per William Schantz, research shows that when it comes to investing advice, maintaining a few basic principles is actually helpful in achieving success. The surprising truth of investing is that following mediocre advice will often lead to better results than relying on overly complex strategies alone!
William Schantz Shares The Surprising Truth of Investing: Mediocre Advice Is Best
The surprising truth of investing is that mediocre advice is often the best kind, says William Schantz. It might seem counter-intuitive, but this is actually a well-established fact backed up by both research data and real-life experience.
On paper, it makes sense that the most experienced financial advisors should be consulted when making important investment decisions. However, studies have shown that people who take simple advice are more successful investors than those who take complex advice from experts or try to pick their own stocks and manage their own portfolios. In fact, one study conducted by researchers at Brigham Young University concluded that average investors with basic trading knowledge could outperform those with more advanced knowledge in the long run.
Another study conducted by professors at Stanford Business School found that investors who received advice from human brokers were more successful than those who used automated trading bots. In this study, investors using the human broker outperformed their peers by an average of 6 percentage points per year.
Real-life experience also supports this notion that simple advice is often the best kind when it comes to investing. Take Dave Ramsey, for example; he’s a well-known financial advisor and radio host who offers basic advice on smart investing and money management. Despite his lack of formal training or credentials in finance, his listeners routinely report much greater success with their investments than those who take complex advice from experts or actively manage their own portfolios.
So William Schantz recommends not being fooled into thinking you need complex strategies and expert advice to make smart investments. The truth is, sometimes, the most successful investors are those who take simple advice, stay grounded in what they know, and manage their own portfolios with caution. Though investing can be a complex process, you don’t need to be an expert or have specialized knowledge to succeed – even average investors with basic trading knowledge can outperform experienced traders over time. This is the surprising truth of investing: mediocre advice is often your best bet.
William Schantz’s Concluding Thoughts
In conclusion, the surprising truth of investing is that mediocre advice is often better than good advice, says William Schantz. The ability to plan and anticipate market conditions is almost impossible due to the unpredictable nature of stock markets, meaning most investors will not be able to successfully plan out the best trades. However, staying up-to-date on simple trade strategies and being careful with where you place your money can help mitigate risks while still generating a fair return. Moreover, it’s also essential to heed the sage advice that comes with “too-good-to-be-true” offers when it comes to investing in order not to fall prey to scammers and schemes. Though average returns may seem lackluster in comparison to so-called “profitable investments,” the simple truth remains: better safe than sorry!