I initially wanted to put off writing about this fallacy, but I cannot avoid it. Psychologists use this term to describe the decision to ignore dangerous or negative information by “burying” one’s head in the sand—like an ostrich—and hoping it would disappear. The…
Oops! Despite trying to understand more than 60 cognitive biases by writing about them, I just realized that I have yet to share anything about the “classic”—the Sunk Cost Fallacy. And although I have written about its sister biases Loss and Regret Aversion, they alone leave gaps…
…is themselves. That’s right, the single largest risk to investors is themselves. By that, I, of course, mean the influence of human emotion and psychology in decision making. It seems quite clear to me that humans are uniquely wired incorrectly for long-term…
Nothing Méi shénme Nada Gar nichts Hmm, interesting, I guess I have to visit an Audiologist to check on my hearing. Still, this—hearing nothing—could be a good thing, because when we say something repeatedly, we are likely to believe it with increasing…
… and whoever does not believe that urgently needs a change in perspective. May I invite you to open your mind to the universe’s abundance? Undoubtedly, this could be your ticket to something better, since feelings of abundance attract even more abundance. Having trouble believing me? Do continue reading then. It…
Are you a bit shortsighted? Well, I was. Do you suffer from Myopic Loss Aversion—when it comes to money? Myopic-what-aversion? Myopic Loss Aversion is the tendency to focus on avoiding short-term losses—even—at the expense of long-term gains. As a consequence in the investment field—and…
I believe people sometimes need an accountant with a whip next to them. Wuh-PSSSH! Whapshhh! Although for some of you, that may sound like a great idea (“yeah, give it to me!”), my take is that the majority of you would be…
52 years old, three teenage kids, one wife, home since 1997: Singapore After completing my A-levels in Germany, I started on the traditional path in acquiring some skills to earn money. I did an Industrial Apprenticeship with Siemens. Then worked, and…
What kind of treadmill is that? You say, “I know only the treadmills from Horizon, Epic, and Lifespan.” Like so many of us, I am quite sure that you have spent some time on the Hedonic Treadmill. The Hedonic Treadmill is one that some people are constantly running…