portf turnover for methodical and indv investors?

CFA Level III
#1

what can we comment on the portfolio turnover for methodical and individualist investors? is there any way of judging that? (or am i overthinking??)

#2

I would think it would be low for both. The individualist investor usually doesn’t commit to an investment until they’ve conducted their own research, which most likely they’ll be confident in. The methodical investor wouldn’t commit until they’ve done thorough research using all the information they can get.

#3

thanks … i agree on the individualist… but i personally think that with the methodical investor… who follows investors and has no emotional attachments… it can be argued both ways.

#4

Methodical is more risk averse than individualistic so naturally would have a lower return

#5

Xtra Wrote: ------------------------------------------------------- > Methodical is more risk averse than > individualistic so naturally would have a lower > return What about turnover? Low turnover can be justified from regret avoidance.

#6

If I have to chose one, an individualistic investor is likely to have a higher turnover because they are willing to accept more risk than methodical investors.