Behavioral Finance

Information Overload

This is a repost of an article I wrote back in 2018. With the market being a bit volatile the past few days, I figured I would pull forward some content from back in the day. This was helpful back then to understand how crazy the world was getting with market volatility. At the same…

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The Misinformation Age

Peter Lynch is famously quoted saying “buy what you know”. A simple statement to help investors find a path forward among the confusion of the investing world. In the 1970’s, when Peter Lynch ran Fidelity’s Magellan fund, investing was a platform for the ultra rich and highly educated. Today, anyone with a smartphone can trade…

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Hype Investing

This wasn’t a bunch of people with a solid investing thesis on businesses like Gamestop, AMC Theaters, and Blackberry but rather some brilliant research into how markets work followed by a lot of hype. If you need to get caught up on what happened, Gamestop has had numerous hedge funds betting on its demise for…

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What a Year

2020 is one for the record books. Not just the annual record books, but more of a year that will be in focus for investors, researchers, academics, and so many more for decades to come. The past year will be in our history books forever. If I were to call you in January of last…

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72 Hours

What is it that makes us upset, angry, or even mad when we see losses in our portfolios? Why do investors seem to always fall short of long-term average returns? Why do we constantly feel the need to change our investments? The short answer…we are wired that way! Most individuals are planning YEARS in advance, whether for…

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Managing Our Emotions

2018 has become an unbelievably stressful year for investors. From tariffs and trade wars to politics and corporate fraud, 2018 will be remembered as quite the year of drama. It seems like you cannot go a day without seeing something concerning in the market, making you want to just give up. With volatile periods, I figured it…

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Stop Chasing Returns

What is it about human behavior that has us all chasing the newest, shiniest investment that comes our way? Each and every year some new topic has the markets all excited and people rush out the door to figure out how they can take advantage of it. But the thing we have to try to…

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Overexcitement

May 21st, 1980 Star Wars – The Empire Strikes Back releases Overnight, Boba Fett becomes an instant fan favorite So how does a character with virtually no screen time create such hype, excitement, and allure among the Star Wars Fans? First, some interesting stats about the movie from the Boba Fett Fan Club: Boba Fett’s 4 lines…

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Challenge to Judgement

In 1974, Paul Samuelson writes an article in the Journal of Portfolio Management titled “Challenge to Judgement.” The article questioned the concept of active management and hinted at the origin of the first index fund. The article is a short read but can be summed up with a quick quote from Paul: “At the least,…

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Luck or Serendipity

When you think about the future, where do you see yourself? For some, it’s retiring in a place you love and enjoy. While for others, it’s building a wonderful business and career that is both challenging and rewarding. But when we think of these goals we set for ourselves, how do we actually get there?…

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