When Swedes chose funds on their own rather than taking the default, their portfolios had much higher fees, were more poorly diversified, exhibited home bias (half invested in Swedish stocks despite Sweden being ~1% of world product) and heavy tech concentration chasing past performance, and the average self-directing investor lost 40% in the first three years.

causalpending

Speaker

Richard Thaler

Evidence Quote

the average investor lost 40% of their money in the first three years

Source

Richard Thaler on Libertarian Paternalism 11/6/2006EconTalk
Created: 6/13/2026, 7:01:05 PM

My Notes

Loading notes...