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It is quite amazing how faulty our human thinking processes can be.
If you are interested in the distortions - or biases - that we regularly come up with, take a look at this article. See how confident you feel after you have read it!
I am not a financial adviser and the information provided does not constitute financial advice. You should always do your own research on top of what you learn here to ensure that it's right for your specific circumstances.
Very interesting 'article' - Provides a good reason why many of us look forward to your posts as "We are drawn to details that confirm our own existing beliefs".
ReplyDeleteWe believe diy-income-investor provides good financial advice... although in your own words, we all have to "do our own research"!
Splendid essay. It's just so sad the the psychotherapeutic idea that having insight into all these cognitive biases somehow helps you to sort things out doesn't work either for everyone or all the time. I spent a lot of time accepting quite good money for helping other people with their cognitive (and other) biases. Sometimes it helped them and sometimes it didn't. But knowing the stuff hasn't made me a better investor, I think. No in the same category as applying the Sisyphean rules systematically!!
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