This document discusses behavioral investor types and how to classify investors based on their characteristics, tendencies, and behaviors. It outlines a 4 step process to identify an individual's active or passive traits through an interview and risk tolerance assessment, test for behavioral biases, and confirm their overall behavioral type as a Preserver, Follower, Independent, or Accumulator. Early models for categorizing investors include the Barnewall Two-Way model of active vs passive and the BBK three category approach, while the presented approach aims to develop a more comprehensive psychographic model.

1. Behavioral Investor Types
Diagnostic Process

2. Development of BF
Technology
stock
bubble
Credit
bubble

3. Challenges
Guidebook
What to
do?
Common
language

4. “Alpha” Method
Beginning
Performance
>
Expectation

5. Psychographic Model
Classify
Characteristics
Tendencies
Behaviors

6. Early Models
Barnewall
Two-Way
BBK

7. Barnewall Two Way
Active
Passive

8. BBK

9. BIT Process
Step1: Interview client and identify active or passive
traits
Step2: Adminster risk tolerance level
Step3: Test for Behavioral Biases and Confirm Behavior

10. Behavioral
Alpha
4 BIT
process
Preserver
Follower
Independent
Accumulator