3min chapter

Bogleheads On Investing Podcast cover image

Episode 056: Dr. Daniel Crosby on the behavioral investor, host Rick Ferri

Bogleheads On Investing Podcast

CHAPTER

The Psychology of Never Enough

There's got to be a fundamental basis behind it and a business basis behind it in a way. We know better now than we do a hundred years ago about nutrition, but our health outcomes are diminished because it is behaviorally difficult to eat salad over a donut. The same thing is true of value investing. Value investing has a behavioral underpinning to it. It's not always going to win. There will be long stretches where it doesn't. But I still think it's a sensible way to invest because it shows up in the data. There's something psychological to it that means it's probably going to stick around for a minute.

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