Or otherwise known as reliance on old-fashioned financial institutions and outdated economic structures. Partly, it is due to habit; partly, because of our concerns about liquidity; and partly, because we think that it is always risky to experiment with new things where we might lack…
Emotions are the main cause and driving force in the stock markets. Last week I shared some thoughts why understanding our mind as a tool that tries to live in an uncertain world is an important challenge. Because the brain…
Before you read on, take a minute and think about this question for a while. Look back at your recent transactions. How did you arrive at those decisions? Are you happy with your past decisions? Any regrets? C’mon. If you’ve…
In my previous post I shared a few thoughts on probabilities and statistics. I wrote about disregarding probabilities in decision making, ignoring small probabilities and not over-weighting small probabilities. A tough act to follow. I am totally guilty of failing…
At the end of part 1 of this blog post we parted with the open question: How were most of these investment legends able to be wrong more often than they were right and still make incredible profits? To analyze…
Oops, did you click this post by accident? Or did you conscientiously click it because you do consider yourself a “serious investor” – I mean – serious investor (no irony intended)? I do apologize if my header created any sense…
I have been fooled. I am convinced. It was about one year back when I was sourcing for a new family TV set. Off I go to one of those notorious big (presumably) discount retailers. After I mentioned that I…
I happened to drop by Orchard Road a few days back. It was a good opportunity for chilling out at a cafe and screening the surroundings for some beautiful …, well, for some beautiful social study opportunities. And there were…
Busy schedules and weekly routines have a tendency to put my brain on autopilot and I lose sight of the important things in life. Some of life’s essential truths need repeating. So, I’d better write them down: MY SELF-WORTH…
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…