Bad Investor Behavior Can Be Very Expensive

Brief interview with yours truly by Robin Powell from The Evidence Based Investor:

Also take a look at SmartInvestorTV for a bunch of other interesting resources.

Meme Reversion

500 and Counting

I’m now about 500 posts and a million words into the back-to-front world of financial psychology and you might think I'd have learned something useful by now. Well, it turns out there are only a couple of things you need to bear in mind: that mean reversion is the only certain thing about markets and that (almost) no one is interested.

The reason that no one is interested is that everyone is convinced that they can identify the narrative, the story, the meme that will find the next wonder stock that defies the law of mean reversion. And you might, but the chances are you still won't become filthy rich on the back of it, because only in hindsight is success inevitable. 

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Bamboozled By Your Bias Blind Spot

No UFOs Here

It has come to our attention that there are amongst you those who are quite happy to accept that behavioral biases affect the way that other investors act but refuse to agree that you, yourself are so afflicted. Of course, most UFO abductees reckon everyone else is a faker, so we shouldn’t be too surprised at this.

There’s a term for this wilful foolishness: it’s called the bias blind spot. We recognise it in others, so why don’t we see it in ourselves?

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