The Winner’s Curse and Homo Investorus
The world does not operate in accordance with conventional economic or finance theory posited on the notion that people are both rational and selfish.
The world does not operate in accordance with conventional economic or finance theory posited on the notion that people are both rational and selfish.
Investor psychology can cause a security to be priced just about anywhere in the short run, regardless of its fundamentals
We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful
If you always look to others for confirmation that you are right you will never be self-reliant.
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