Why Do People Fail to Buy the Things That Are Cheap?

Inefficiencies mis pricing are instances when one asset offers a higher risk adjusted return than another. In theory, investors will move capital out of high priced assets and into cheap ones. But sometimes investors are condemned to buy in a market even though there are no bargains or to sell even at giveaway prices. Psychological forces like greed, fear, envy and huborus permit mispricing to go uncorrected. And superior investment records belong to investors who take advantage of them consistently.