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How to Overcome Overconfidence and Overconfidence in Investing
Most investors are highly confident that they are smarter than everyone else. Overconfidence can lead to us making some really simplified and dangerous assumptions. Loss aversion is the human tendency to dislike the loss of capital more than the same level of gain. If you're applying Buffett's focused investor approach, my best advice would be to thoroughly study whatever company it is you're looking to purchase.