The economists looked at the differences in the investment portfolios of the twins both identical and non-identical - in an attempt to devise what percentage of investment decisions are affected by an individual's genetic makeup.<\/p>\n
Some 18 percent of variations in investment styles were down to genetics if price-earnings ratios were used as a measure, according to the economists. This rises to 25 percent if Morningstar's Value-Growth Score (which enables investors to choose a fund with their preferred style) is used as an investment style measure.<\/p>\n
(Read more: Buffett's 'fundamentals of investing')<\/p>\n
Adrian Lowcock, senior investment manager at Hargreaves Lansdown, said he was not surprised by the findings.<\/p>\n
\"Everyone's DNA forms the framework from which they can develop, and investors certainly have different categories of risk - some people are naturally risk-takers and others are much more cautious,\" he told CNBC.<\/p>\n
\"Compared to the average person I think I am more willing to take certain risks although I couldn't say how much of that is down to my DNA.\"<\/p>\n
Next generation of cautious investors?<\/p>\n
When it comes to nurture, the study found that an investor's style is also affected by their experiences, both earlier and later in life.<\/p>\n
\"Those investors that have had tougher upbringings, that were poorer - for example, Great Depression babies - are more likely to develop a value-orientated investment style later on in life,\" Cronqvist added.<\/p>\n
(Read more: EBay strikes back at Icahn)<\/p>\n
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Read this article: The economists looked at the differences in the investment portfolios of the twins both identical and non-identical - in an attempt to devise what percentage of investment decisions are affected by an individual's genetic makeup. Continue reading
\nSavvy investor? It's in your DNA<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"