Behavioral Finance

Surviving Your Investments

I recently finished reading Deep Survival by Laurence Gonzales. It’s an excellent book that does a great job of evaluating how people make decisions and ultimately fail or succeed in remarkably challenging situations. These chaotic events are pretty insane. For example, Gonzales recounts the decisions made by a climber while basically falling off the side of a…

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Status Quo Bias

The inability to take action is one cognitive issue investors face. This “everything is alright” mentality defers our attention away from our investing and we focus on more interesting things (Netflix, shopping, etc.). Understanding that we are neglecting our future selves will help us focus on making correct steps today to improve in the future….

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Information Overload

This is kind of scary but it’s accurate. Every 60 seconds, the following information happens: So…to recap: every 60 seconds: 65,000 photos get uploaded into Instagram 350,000 tweets are sent 3,800,000 Google searches are run 156,000,000 e-mails are sent With all this information going on at one time: How are you supposed to focus on investing…

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