Managing yourself

Each post has a list of what Daniel Kahneman, a Nobel Prize winning psychologist, calls risk policies and I call gap-to-edge rules.

Here were financial people who could seriously consider stocks less safe because they have declined in price

The most successful sailors are those who have a particular mindset in how they deal with the setbacks.

Really wonderful companies will often get overpriced and selling means losing a position in a first-rate company.

It’s amazing that 2% makes such a big difference

Subjective confidence in a judgment is not a reasoned evaluation of the probability that this judgment is correct

The strong bias toward believing that small samples closely resemble the population from which they are drawn is also part of a larger story

Our mind searches for confirming evidence that we are right and shies away from contrary evidence.

Herding. All stock market prices are both the cause and result of herding behavior amongst investors.

Our gut needs training. Many of our instinctive feelings are the exact opposite of what we should be doing.

Nuggets of Investing Wisdom