Hindsight is 20/20

In last week’s blog, Heath pointed out the tendency of people to base investment decisions on irrelevant facts or reference points. In the field of behavioral finance, this is known as anchoring. Heath provided a great example of anchoring: basing … Continue reading

Test Your Own Behavioral Bias

People are fascinating to me.  You’d think that over thousands of years, the human brain would have evolved to become capable of making unbiased decisions as a means for survival.  But based on James Montier’s book “Behavioral Investing” our brains … Continue reading