Investors might be their own worst enemies by being overconfident, posits an article in Morningstar. A 2006 study by James Montier found that out of 300 money managers, 74% considered…
Tag: biases
Behavioral Bias Lessons
The volatility in the pandemic-era equity markets have given a rare glimpse into specific behavioral biases that usually aren’t as apparent during “normal” times, contends an opinion piece in CFAInstitute…
Everyone is Influenced by Behavioral Biases
A recent article by Morningstar offers findings of a recent study showing that most Americans are overconfident and argues that investors “tend to make snap decisions and irrational—sometimes destructive—mistakes, based…
Don’t Take Election Stress Out on Your Investments
In the wake of the election, heightened emotions could lead some investors to act “in the heat of the moment” and make personal financial decisions that “prove costly.” This according…
Decision Making and Biases that Beat Logic
An article in CFA Institute discusses how emotions often outweigh logic when it comes to decision making. The article cites research showing that our unconscious mind is “a major culprit:…
The Damaging Role of Biases in Investing
By Jack Forehand (@practicalquant) There are so many biases that can hurt your returns in investing that it is hard to keep track of them. There is also no shortage…
Keep Your Biases At Bay
With market volatility increasing at times in recent months, Kiplinger’s Anne Kates Smith says investors should be particularly careful not to let emotion and behavioral biases impact their investment decisions.…
How To Profit From The Behavioral Biases Of Others
Top fund manager John W. Rogers Jr. says investors often fall prey to behavioral biases, and good value investors can benefit from that. (more…)