2025-10-09 21:00:00
INVESTMENT
A new trend is emerging among Lithuanian investors – the illusion of knowledge: experts advise how to avoid mistakes
Investment culture is growing rapidly across Europe in recent years, but a new phenomenon is also emerging – the illusion of knowledge. Just a few clicks on a phone allow people to invest in various projects, and investing, once a niche activity, has become a daily habit for many. However, this growing interest also raises new questions – how to learn to use these opportunities responsibly, assess risks, and make well-informed decisions.
Between October 6–12, the International Investor Week, initiated by the Bank of Lithuania, is taking place. During this week, various institutions and organizations focus on educating the public and strengthening awareness about investing. On this occasion, experts share insights not only about the mistakes we still make but also offer advice on how to become more mindful investors.
What does the Lithuanian investor look like?
Some time ago, the Bank of Lithuania created the most recent profile of the country’s investor. The data showed that over the past four years, the number of private individuals using intermediaries to trade in financial markets has increased significantly – from about 42,000 in 2020 to 176,500 in 2024. The share of women and investors under 34 years old has particularly grown, indicating that investing is becoming more accessible to various groups of society.
Decisions are increasingly being made spontaneously, based on short-term trends or social media information rather than deeper analysis.
According to Dr. Viktorija Dičpinigaitienė, Head of the Financial Literacy Centre at the Bank of Lithuania, the rapid pace of investment activity doesn’t always align with society’s understanding of how the process actually works. She notes that the behavior of today’s investors often mirrors the logic of social media – quick reactions, short attention spans, and instant decisions.
“In recent years, investor behavior has been changing – we see more young, active people who want fast results and trust technology. That’s natural, but it also requires greater awareness. We notice that decisions are increasingly made impulsively, based on short-term trends or social media content rather than thorough analysis. Such actions are often driven by emotion, not strategy, which increases the likelihood of mistakes,” she emphasizes.
According to Dičpinigaitienė, investor mistakes are not caused by a lack of knowledge but by superficial information consumption – financial decisions are increasingly shaped by social media content rather than expert analysis. Recently, so-called finfluencers – influencers who give investment advice without having the required licenses or expertise – have become very popular.
“Social media content activates our fast, emotional thinking system, which means that even rational people can make impulsive decisions based on shallow or attractively presented information. Such advice sounds convincing but often hides risks or commercial interests. The key today is not to avoid technology but to use it responsibly and critically assess information. When follower counts become more important than competence, we risk trusting impressions instead of knowledge,” she explains.
V. Dičpinigaitienė adds that this trend poses challenges not only for consumers but also for institutions. According to the Anti-Money Laundering Competence Centre, the number of investment fraud cases in 2024 rose from 1.6 thousand to 1.9 thousand, while losses increased from €4.8 million to €5.57 million compared to 2023.
“The more people get involved in investing, the more important it becomes to distinguish between reliable and misleading sources. This is a natural part of development – as investment culture matures, so does our responsibility,” she says.
Technology – both a challenge and an opportunity
Although technology partly contributes to superficial information use, it has also opened up new opportunities for investors. According to Miglė Grybinienė, Head of Marketing at the crowdfunding platform Profitus, digital platforms, mobile apps, and artificial intelligence tools have fundamentally transformed the investment culture in recent years – making finance more accessible, transparent, and understandable.
“Digital tools have democratized investing. Today, you don’t need large capital or complex knowledge – it’s enough to be curious, learn the basics, and make responsible decisions. Thanks to mobile platforms, investing has become not an exclusive privilege but a habit available to everyone. This is a significant change – for both young and older people – as technology lowers the barriers to entering the financial market,” she says.
Tomas Vasiliauskas, AI expert and CEO of Agenica, notes that understanding how technology works has become a key advantage for the modern, tech-savvy investor. Those who can use AI responsibly gain not only speed but also a clearer understanding of market dynamics.
“Artificial intelligence has already become an everyday tool for many businesses and consumers. It’s changing how people collect, evaluate, and interpret information, especially in finance. For example, BlackRock, the world’s largest asset management company, uses an AI system called Aladdin, which analyzes data in real time, models scenarios, and assesses risks. Such tools help reveal not only numbers but also causal links, enabling more informed decisions. But even here, human judgment is essential – AI can assist, but it doesn’t replace our responsibility,” he says.
According to Vasiliauskas, the greatest value of these technologies lies not in them “knowing better,” but in enabling people to understand markets faster, assess risks, and make data-driven decisions.
“Many people think AI is an oracle. That’s a misconception. Since the Google era, we’ve been used to typing a question and getting an answer, but AI works differently – it doesn’t search for truth; it predicts it based on context. That means if you ask the wrong question, you’ll get a misleading result. However, when an investor can combine technology with critical thinking, a new level of quality emerges. The key is not to blindly trust the algorithm but to ask the right questions and verify sources. When people understand what and why AI is analyzing, they gain not only a tool but also greater confidence in their own decisions,” he explains.
Changing investor expectations
M. Grybinienė also observes another trend – with technological progress, people’s perception of time is changing. Information, decisions, and feedback are now instant, making patience an increasingly rare skill. This habit naturally extends to finance – many expect investment results as quickly as they get likes or comments on social media.
“People are used to fast pace and instant results. On social media, we get reactions immediately, so it’s natural to expect similar speed from investing. But here, the opposite rules apply – the more you rush, the greater the risk. Investing isn’t a sprint; it’s a process where time, discipline, and patience are key,” she says.
Patience, she stresses, is one of the biggest challenges for modern investors – yet it’s what determines success.
“Some people, upon hearing about attractive returns, want to jump in right away, while others hesitate, thinking they need the perfect opportunity or a large amount. Both reflect the same thing – a desire to avoid uncertainty. In reality, it’s easy to start, even with small steps. There are reliable options, such as crowdfunding platforms like Profitus, which allow small, transparent investments where you can clearly see where your money goes. This builds trust and helps form long-term financial habits,” Grybinienė adds.
Three key steps
Experts agree: investing is a gradual process that requires time, knowledge, and conscious decisions. According to Dičpinigaitienė, the first step is to set a goal and gain knowledge – understand where and why you are investing.
“Before investing, pause and ask yourself a few questions: Do I know why and where I’m investing? Does this company have a license to offer these services in Lithuania? Do I understand the risks I’m taking? Our experience shows that investors who verify sources and make conscious decisions are much less likely to fall victim to scams. Those who trust promises of ‘quick and safe returns without risk’ usually lose not only their money but also their trust in the financial system,” she warns.
According to T. Vasiliauskas, the second step is to learn to use technology without losing critical thinking. “Don’t treat AI as all-knowing. Technology helps analyze data, monitor trends, and forecast – but it doesn’t make decisions for us. It’s important to stay critical: question, verify, doubt,” he emphasizes.
The third step, according to Grybinienė, is consistency and real action. “People often wait for the ‘perfect moment’ to start, but that moment never comes. The key is to start with real, achievable steps. Even small amounts can be a start if invested thoughtfully and consistently. Reliable platforms make this transparent and easy – but even here, you need habits: regular contributions, diversification, and risk awareness. Financial stability isn’t an accident; it’s built through consistency,” she concludes.
