Behavioral Finance and Your Portfolio

28Accumulator Behavioral Investor Type

Wealth is not his that has it, but his that enjoys it.

—Benjamin Franklin

Name of Behavioral Investor Type: Accumulator

Basic Orientation: Interested and engaged in wealth accumulation and confident in investing ability

Dominant Bias Types: Emotional, relating to overconfidence and desire for influence over investment process

Impactful Biases: Overconfidence and Illusion of Control

Investing Style: Actively engaged in decision making

Level of Risk Tolerance: High to very high

The Accumulator behavioral investor type describes investors who are interested in accumulating wealth and are confident they can do so. These BITs have typically been successful in some business pursuit and believe in themselves enough that they will be successful investors. As such, they often like to adjust their portfolio allocations and holdings to market conditions and may not wish to follow a structured plan. Moreover, they want to influence decision making, or even control the decision-making process, which potentially can diminish an advisor's role. At their core, Accumulators are risk takers and are firm believers that the path they choose is the correct one. Unlike Preservers, they are in the race to win—and win big. Unlike the friendly Followers, they rely on themselves and want to be the ones steering the ship. And unlike Individualists, they usually dig down to the details rather than forge a course with half the information that they need.

Unfortunately, ...