Part 2: The Journey of a DIY Investor | The Familiar Trap – Home Bias

Early in his journey, Mark fell into a common trap: home bias. He heavily invested in U.S. companies, sticking to what felt safe and familiar. Convinced he knew the ins and outs of these businesses, he ignored international markets and the opportunities they held. However, this domestic-heavy approach left his portfolio missing out on potential growth from emerging markets and global diversification.

Sarah, with her expertise, would have guided Mark to broaden his horizons. Instead of focusing only on what he knew, she would have introduced him to a diverse range of investments, helping to optimize returns and mitigate risks. With global diversification, Mark’s portfolio could have weathered economic fluctuations more effectively.