Did millionaire investors get into stocks like Facebook, Amazon or Google early on?
Perhaps they inherited a lot of money? Or maybe they bought at the bottom of the market?
Well, according a recent survey from Yale University, the answer is simple.
The wealthy, according to the survey, are much more likely to take advice.
When millionaire investors reflect on how much of their investment portfolio should be in stocks and shares (equities), the most-cited factor affecting their decision is advice from a financial consultant or firm.
Professor James Choi at Yale and professor Adriana Robertson at the University of Toronto also found that whereas wealthy investors placed a high degree of importance to advice, the average American placed the importance of advice at number 23 on their list of priorities.
I believe that these results would be replicated globally, and aren’t just relevant to the United States.
I have also noticed a second commonality. People who become wealthy later in life, are less likely to assume that only “the rich” can afford advice.
So, often times, people who become millionaires, receive advice years before they reach that milestone.
There is a simple reason for that. If you fail to prepare, then prepare to fail.
If you want to get fit, then everybody can watch fitness videos at home at 7am, looking at models grinning like this:
You are less likely, however, to see results compared to having a personal trainer come to your house everyday at 7am.
The reason is simple; human nature. We, more often than not, choose the path of least resistance if we aren’t accountable to somebody.
That means that we are more likely to drink and smoke if we live next door to a bar.
We are also more likely to exercise if we keep fitness equipment at home, or have a personal trainer at hand.
And yes, that means we are more likely to invest well, if we have somebody guiding us for decades, in a world where spending is the path of least resistance.
Pained by financial indecision? Confused by money? Reach out to me today here, or via the WhatsApp function.