Afford Anything

The Real Reasons People Make Bad Investment Decisions, with Finance Professor Meir Statman

Jul 26, 2024
In this conversation, behavioral finance professor Meir Statman shares insights on how psychological factors shape investment decisions. He contrasts standard finance's rationality with the reality of emotional investing, illustrating why people often prefer dividends to selling shares. Through colorful metaphors like the dinner plate analogy, Statman discusses the need for diversification and the dangers of holding onto losing stocks. Plus, he emphasizes the importance of holistic financial well-being, blending emotional awareness with rational strategies.
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