Doctors, Fat People, and Buying Stocks

We know that the term “Fat People” isn’t politically correct.

(I believe the proper term is “size challenged” …LOL!)

However, my doctor – who is a very wise man and great doctor – once told me that the reason people get fat (his words) is because they eat more than their body needs.

It makes perfect sense when you think about it.

And when his patients give him every excuse under the sun as to why they must eat because of so and so, his response to them is usually not well received.

Doctor:  “When you’re craving that bag of chips or chocolate cake, instead of eating them, drink a bottle of water.  And if the craving comes back…drink another bottle of water.”

Again, it’s another example of common sense and good advice…Thanks, Doc.

This got me thinking about how most investors get fat by over indulging when buying stocks.

Huh?

That’s right.

Too often investors can’t figure out how to curb their appetite when it comes to diversifying…especially in the case of buying mutual funds and ETF’s.

Their 401k offers soooo many choices and they think that by spreading their money around that makes them well diversified.

WRONG!

They totally miss the fact that they’re duplicating their efforts because most of the funds they’re in are all buying many of the same stocks.

So much for diversification.

The other big excuse for eating too many mutual funds is that their “financial advisor” tells them it’s a good idea.

That’s kinda like another fat person telling you it’s okay to indulge yourself with cookies.

Learn how to avoid getting “size challenged” and losing money when the markets get sketchy by reading our October newsletter:

It’s easier than going on a diet.