Investment regret refers to the emotional response and feelings of remorse that an investor experiences after making a decision that leads to a less favorable outcome than anticipated. This feeling can arise from various scenarios, such as missing out on a profitable investment opportunity or witnessing a current investment decline in value after purchasing it. Investors may dwell on what they could have done differently, such as selecting a different asset, timing their purchase better, or responding differently to market changes.
Investment regret can significantly impact future decision-making, leading to overly cautious behavior or impulsive decisions in an effort to compensate for past mistakes. Understanding and managing investment regret is essential for maintaining a rational investment strategy and mitigating the emotional biases that can lead to suboptimal investment choices. It highlights the psychological aspect of investing, where emotions can influence judgment and behavior, potentially affecting long-term financial outcomes.
As 2025 nears, reflections on 2024’s market movements unveil missed opportunities that could have transformed my investment portfolio. Specifically, three standout stocks in the S&P/ASX 200 Index left me wishing…