Focus on the “Known Knowns” When Investing

Among the many parallels we can draw between life’s macro issues and the world of finance, perhaps one of the most compelling is the tendency for people to think they know more than they do. While this can be costly in any context, it can break the bank when mixed with investing. In the field of psychology, this tendency is known as the Dunning-Kruger effect, named after the Cornell University psychologists who studied it. David… Read More