At the beginning of each year, there’re many pundits, experts, self-proclaimed gurus, and other suspicious characters who’d like to sell you stuff predicting the directions of the Stock Markets. As I personally have ample years of experience in the Stock Markets…
Could we both agree on the following notion? That, in the investment field, there is no one instrument that can perform all the time, and that there is no one who can say with certainty—in advance—which instrument would perform best. The future is uncertain and markets are random. As such, what Harry Markowitz…
Recently there has been a lively discussion among the Singapore Financial Blogger Scene about ‘Net Worth’ and how it should/could/may be computed (here, here, and here). This showed me how imperfect and susceptible to bias we all are. We are…
Do you know what is the central element of good decision-making? It is actually one’s ability to manage delay. Yes, our ability to think about delay is a central part of the human condition and it’s a gift, a tool that we can—and should—use to examine…
Have you ever asked yourself this: How can I control myself when I feel the irresistible need to break my rules about how to invest in the stock market? That question pertains to the “hot-cold-empathy gap”, where we say to ourselves in a calm…
This is the tendency to fail to incorporate prior known probabilities which are pertinent to the decision at hand. Caution: Don’t read on if you are 40 years of age and above! Here’s an interesting question for the rest of you: Why aren’t more young people…
I am very glad that more and more of you are stopping by the Tacomob-website and I feel specially encouraged by all your positive E-mails. One of the more frequent questions asked has formed the header to this post and there are dozens of answers to…
We have the tendency to overestimate the degree to which others agree with us; therein making this—tendency—just another of those predictable patterns of thought and behavior that lead us to draw incorrect conclusions. Psychologists call this the False Consensus Bias. Let me ask you: “Is agreeing…
We sometimes tend to think that ideas and feelings arising from our intuition are essentially superior to those achieved by reason and logic. As such, intuition—the good old “gut feeling”—has come to be idealized as the Noble Savage of the mind, fearlessly cutting through…
Now, that is a no-brainer! Others might even call this a “know-brainer”. Still, I know from personal experience that this principle is not easy to apply; nevertheless, it is worth your utmost attention as it is the key to growing your savings. People are always talking about character,…