Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors

By Brad M. Barber, Terrance Odean. 2000

3,036 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/5afc41fd45e6eeca0353faf04176355065b0c6f5

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Citations in the corpus

Is Unbiased Financial Advice to Retail Investors Sufficient? Answers from a Large Field Study (2012, methodology): “We use this to calculate portfolio turnover, as in Barber and Odean (2001), as well as trades per month. We also have information on the cash accounts of each customer at t = 0, enabling us to calculate the risky share as the risky portfolio value divided by financial wealth with the brokerage (risk”
Do Individual Investors Treat Trading as a Fun and Exciting Gambling Activity? Evidence from Repeated Natural Experiments (2015, background): “1 We also refer the reader to the discussions in Barber and Odean (2000, Section VI.D), Grinblatt and Keloharju (2001, Introduction), and Statman (2002). The evidence in Li (2012, Table 7) further suggests that gamblers are more likely to invest in financial securities.”
Institutional Investors, Past Performance, and Dynamic Loss Aversion (2009, background): “According to Barber and Odean (2000) and Dhar and Zhu (2006), older and more experienced retail investors are less overconfident than their younger and less seasoned counterparts.”
Equilibrium Underdiversification and the Preference for Skewness (2007, positive): “6 This database is used and described in other studies including Barber and Odean (2000), Barber and Odean (2001), Barber et al.”
Individual Investor Trading and Stock Returns (2008, positive): “Barber and Odean (2000) look at the overall performance of individual portfolios and find that they underperform the index by about 1%.”
A study on the impact of investment experience, gender, and level of education on overconfidence and self-attribution bias (2015, background): “Barber and Odean (2001) studied investment transactions of 35 000 households, between 1991 and 1997, and noted that overconfident investors overestimate the precision of their information and thereby the expected gains of trading. They also found that men are more overconfident than women, trade mor”
Financial literacy and portfolio diversification (2010, background): “…fact, most investors hold nearly all of their wealth in domestic assets (French and Poterba 1991), concentrate their portfolio in the equity market (Barber and Odean 2000, Goetzmann and Kumar 2001, Barber et al. 2003) and select these stocks mostly on the basis of geographical or professional…”
Online Investors: Do the Slow Die First? (2002, methodology): “For a more detailed discussion of this issue, see Barber and Odean (1999, 2000).”