The Preserver
The Preserver is an investor who places a great deal of emphasis on financial security and preserving wealth rather than taking risks to grow wealth. These investors are guardians of their assets and take losses very seriously. Preservers are often deliberate in their decisions and sometimes have difficulty taking action with their investments, out of concern that they may make the wrong decision. They may instead prefer to avoid risk and stick to the status quo. Preservers often obsess over short-term performance (in both up and down markets, but mostly down markets) and losses and also tend to worry about losing what they had previously gained. This behavior is consistent with how Preservers have approached their work and personal lives—in a deliberate and cautious way.
BASIC ORIENTATION
Loss averse and deliberate in decision making
DOMINANT BIAS
Emotional, relating to fear of losses and inability to make decisions/take action
IMPACTFUL BIAS
Loss aversion and status quo
INVESTING STYLE
Wealth preservation first, growth second
RISK LEVEL
Generally lower than average
Credit to Michael Pompain’s “Behavioral Finance and Investor Types”, © 2012 CFA Institute