Tilson On Common Mental Mistakes


wealthymatters.comWealthymatters reader , Andy Cheung , in response to yesterday’s post : Some Assumptions To Check Before Investing has sent a  link  to an excellent article by Whitney Tilson on common mental mistakes humans persistently make while investing . I think the article should be essential reading for all people who hope to make it good by investing.I didn’t want to just leave the link hidden among the comments,so I have posted a copy of the list of mistakes people make here.The link below will take you to the complete explanation of these mistakes.

1)Overconfidence

2)Projecting the immediate past into the distant future

3)Herd-like behavior (social proof), driven by a desire to be part of the crowd or an assumption that the crowd is omniscient

4)Misunderstanding randomness; seeing patterns that don’t exist

5)Commitment and consistency bias

6)Fear of change, resulting in a strong bias for the status quo Read more of this post

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