UK Fund Manager Slams 'Greedy' Investors

by Philip Morton, Investors Offshore.com

04 February 2003

Speaking to the Financial Times this week, the chief executive of fund management group, Threadneedle Investments suggested that investors' 'greed' should be blamed - at least in part - for their losses over the past three years.

Simon Davies explained to the FT that many retail investors do not understand the value of diversification until it is too late:

'People make stupid decisions,' he explained, continuing: 'People only see the virtues of diversification once something has fallen. So they went haring into technology stocks three years ago, and now they want to leave them and go buy a larger house at the top of the property market.'

He admitted that fund managers should also shoulder some of the blame, but controversially insisted that the majority of losses are the result of rash and ill-considered investment choices on the part of investors:

'I think the fire is already there,' he concluded. 'We've probably thrown a little bit of petrol on it - rather than water - but I think [the fire] does come from the greed of the individual investor.'

Recommended