How Personalities Determine Investing Styles

You're either born a growth-stock investor, or you're not, says Morningstar columnist John Rekenthaler

John Rekenthaler 8 June, 2021 | 10:09AM
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Who Are You Written in Scrabble Letters

On my desk is a paper that purports to show how investment preferences are correlated with personality. The paper doesn't explain that rock-climbers like stocks, while librarians favour bonds. Arguments that physical risk-takers prefer equities have come and gone (and have largely been discredited). This effort, instead, involves investment styles, and it bears a title that only a professor could love: "Personality Traits and Portfolio Tilts Toward Value and Size."

All right, two professors--the authors being the duo of Andrew Conlin and Jouko Miettunen, from Finland's University of Oulu. (A cold place that; the average January high is -8 degrees Celsius, which doesn't sound a whole lot better when expressed in Fahrenheit.)

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John Rekenthaler

John Rekenthaler  John Rekenthaler is vice president of research for Morningstar.

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