It's misbehaving my love for you.

How many times has this happened to you?

Some interesting new fun manager or EDF is putting up great numbers, sometimes for years, and you take the plunge

and finally buy it.

It's a hot fun with tremendous performance, but after a few years you review your portfolio and wonder, hey, how come

my returns aren't nearly as good as expected? You may be experiencing what has become known

as the behavior gap.

It's the reason your actual performance is much worse than the fund you purchase.

I'm Barry Ritoltz and on today's edition of At the Money, we're going to discuss how to avoid suffering from the behavior gap.

To help us unpack all of this and what it means for your portfolio, let's bring in Call Richards.

He's the author of The Behavior Gap.

Simple ways to stop doing dumb things with money.

The book focuses on the underlying behavioral issues that lead

people to make poor financial decisions. So Carl let's just start with a

basic definition.

What is the behavior gap?

Thanks, Barry.

Super fun to chat with you about this.

So I, this is going back now, 20 years, right?

Like, I just stumbled upon this early on in my work with investors that we

would get all excited. I would get all excited. As you, exactly as you said, like we would do some performance review, we would find some fun, we thought was great,

of course past performance is no indication of future results, but what's the first thing you look at?

...