Why Knowing Your History Makes You a Better Investor
Recently, I had the pleasure of joining “The Road Less Babbled” for a deep dive into the surprisingly powerful connection between history, human behavior, and financial decision-making. As someone who started their career with a degree in military history and a nearly empty savings account—not to mention nine years as a U.S. Naval Flight Officer—I know firsthand that the lessons of the past are more relevant to your financial plan than most people realize.
The core of our discussion? People (and not just investors) are plagued by short memories and emotional decision-making. Whether it’s forgetting the gut-punch of the Great Recession or ignoring classic investing mistakes, we’re quick to move on from pain and, unfortunately, often repeat it. In my work as a fiduciary financial advisor, I see the dangers of emotional investing on a daily basis—fear and greed are universal threads that tie all markets and all investors together, no matter the decade.
That’s why history—stories of past market cycles, wars, and recoveries—isn’t just for textbooks. It’s a tool for better retirement planning, avoiding herd mentality, and building investment portfolios you’ll actually stick with during both good and bad times. We talked about the pitfalls of blindly following a classic “60/40” allocation or chasing bonds for safety in the wrong economic environment. In practice, having a plan grounded in history and behavioral awareness is far more valuable than any “hot tip” or trendy strategy.
My advice for individuals at any stage: start early, invest often, and focus on your own goals—not your neighbor’s or the latest headline. Learn about compounding, guard against biases, and recognize that lasting wealth management is less about perfect predictions and more about learning from past missteps.
Finally, whether you’re looking for independent financial advice or just trying to avoid repeating financial history’s greatest hits, remember: the right advisor should be a guide, a teacher, and a partner in building your financial future—someone who both knows their history and is committed to helping you make your own.