Time Spent Worrying
More from the folks at Behaviour Gap
Another 14 Ways Our Mind Plays Tricks On Us As investors – Michael Yardney
Part Two of Michael Yardneys article on psychological bias’s We like to think we’re rational human beings. However last month I’ve shared with you the concept that we are in fact prone to a group of cognitive biases that cause us to think and act irrationally, and this affects many of our investment decisions.…
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Designing Your Life
“It took off in just about a heartbeat,” says Evans, who oversees instruction with help from guest lecturers and a small army of student volunteers, who lead discussion groups. Today, 17% of seniors enroll in “Designing Your Life,” and many more vie for the limited seats in each section. “We’ve had students literally teach the…
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What Do You Think You Know
The worst sort of business is one that grows rapidly, requires significant capital to engender the growth, and then earns little or no money. Think airlines. Here a durable competitive advantage has proven elusive ever since the days of the Wright Brothers. Indeed, if a farsighted capitalist had been present at Kitty Hawk, he would…
DetailsWhy We’re All Overconfident
On the flip side if we were not overconfident we would still be living in caves….
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10 Psychological Tricks Our Mind Plays On Us As Investors By Michael Yardney
What is standing between you and property investing success? It could be YOU! Maybe you’re too biased to be a successful property investor? What do I mean by that? Well…did you know that as property investors we can sometimes be our own worst enemy? It’s not because of the decisions we make, the opportunities we…
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When Willpower Isn’t Enough
One of the most compelling talks I saw at this year’s American Economics Association conference was by Katherine Milkman, an assistant professor at the Wharton School at Penn. She holds a joint Ph.D. in computer science and business, but her passion is behavioral economics — and, specifically, how its findings can be applied…
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Before I Go
A resident’s surgical skill is judged by his technique and his speed. You can’t be sloppy and you can’t be slow. From your first wound closure onward, spend too much time being precise and the scrub tech will announce, “Looks like we’ve got a plastic surgeon on our hands!” Or say: “I get your strategy…
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Herd Behavior in Financial Markets
Over the last twenty-five years, there has been a lot of interest in herd behavior in financial markets—that is, a trader’s decision to disregard her private information to follow the behavior of the crowd. A large theoretical literature has identified abstract mechanisms through which herding can arise, even in a world where people are fully rational. Until…
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