It doesn’t matter what high profile investors are buying or selling
“If you’ve been in the [poker] game 30 minutes and you don’t know who the patsy is, you’re the patsy.”
Part 2: Human Foibles and Investment Decision Making
Most investors suffer from home bias
If you search worldwide, you will find more bargains and better bargains than by studying only one nation. Also, you gain the safety of diversification
Fear and investing
The house of fear has many windows
The secret to keeping things in perspective
Shielding themselves from the pain of losses by Broad Framing
Thinking for ourselves
Heuristic – This alternative to careful reasoning may cause us to answer the question of what is the fair value of a stock by asking the question, what is the ‘market value’?
The danger of specious correlation
It is mathematically inevitable that highly intelligent women will marry husbands who on average will be less intelligent than they are.
The danger of specious statistics
Small samples, sample period and survivorship bias, as weaknesses in statistics, exemplify a problem in our ordinary reasoning.
My take on simplicity in investing
A fancy spreadsheet will give precise numbers but can also give you a false sense of accuracy.
The joy of contrarian investing
The moral courage to act ‘in opposition to the crowd’ when your judgement tells you are right
Your investment style may be stuck in a bad grove in a changing world
It’s not that the contrary views aren’t there. We just ignore them.
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