A recent article in Bloomberg chronicles the past decade’s track record of a “mythical” hedge fund called Hindsight Capital LLC with a tongue-in-cheek account of its wildly successful trades. The…
Tag: Hindsight bias
Ritholtz on Hindsight Bias
“Everyone knew Trump would win all along,” writes Barry Ritholtz in last week’s BloombergView, arguing that such hindsight bias “haunts investors constantly.” Specifically, he explains, the human brain creates “stories…
Emotions and Biases Play Huge Role in Bad Investment Decisions
In a recent New York Times article, columnist Gary Belsky observes that “the majority of cognitive biases and shortcuts that influence everyday judgement and choice have analogues in investment behavior.”…