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.


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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