TIP554: Mental Models for Successful Investing w/ John Jennings
We Study Billionaires - The Investor’s Podcast Network
The Interplay of Overconfidence and Loss Aversion in Investing
Overconfidence in investing means that we believe we know more than we do or make better decisions than others./nLoss aversion states that losses feel more painful than gains feel good, causing us to double down on our losses./nOverconfidence and loss aversion can go hand in hand, leading to risk seeking behavior and poor decision-making in investing./nInvestors should recognize their limitations and learn from their losses to improve their investment decisions.
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