How to become a skilled investor
The subjective confidence we have in our personal level of skill is absolutely no guide as to whether we actually have the skill.
Do quants with algorithms have an advantage over other investors?
Math and algorithms will give precise answers. And therein lies the problem.
Can investors improve their luck?
The courageous may take heart but, before boldness must come skill. Boldness without skill is a recipe for disaster.
Conservative investors win – conventional investors lose
Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally
Investors overreact to vivid memories and recent events
The good news is that we can do something. Kahneman describes risk policies as decision rules that are always applied in similar situations.
The worst behavioral bias – jumping to conclusions
The good news is that we can do something. Kahneman describes risk policies as decision rules that are always applied in similar situations.
Overcoming mistaken short term thinking with Kahneman style risk policies
Reduce or eliminate the pain of the occasional loss by the thought that the policy that left you exposed to it will almost certainly be financially advantageous over the long run
Explainer – herd mentality and poor investment results
People are rationally (?) choosing not to, as they see it, waste their time and effort in exercising their judgment about the market
Investment psychology explainer for Mr. Market – introduction
In truth, Mr. Market’s emotional problems are the least part of it. What he really suffers from is behavioral biases and a propensity to make cognitive errors.
How Warren Buffett goes about valuing companies
We are going to want to get a significantly higher return, obviously — in terms of cash produced relative to the amount we’re outlaying now — for a business than we are from a government bond. That has to be the yardstick at a base.