Daniel Kahneman: Can Investors Develop Expertise In Picking Stocks?

Johnny HopkinsDaniel KahnemanLeave a Comment

Here’s a great excerpt from Daniel Kahneman’s Keynote Address at the Amundi World Investment Forum – AmundiWIF19. Kahneman provides his thoughts on whether investors can develop expertise in picking stocks saying: Confidence & Expertise Can you develop expertise in picking stocks? This is very doubtful. In fact, it is probably not the case, because it is such a highly irregular environment. … Read More

Daniel Kahneman: The Trouble With Confidence

Johnny HopkinsDaniel Kahneman, Investing PsychologyLeave a Comment

Here’s a great little video by Daniel Kahneman on the trouble with confidence. Kahneman makes the point that from a societal perspective confidence is generally very good, but from an individual’s point of view confidence is typically not always good. Here’s an excerpt from the video: Society rewards overconfidence. We want our leaders to be overconfident. If they told us … Read More

Daniel Kahneman: Investors Should Consider A “Regret Proof” Policy To Overcome Loss-Aversion

Johnny HopkinsDaniel Kahneman, Investing PsychologyLeave a Comment

Here’s a great article from Morningstar in which Daniel Kahneman provides financial advisors with advice on how to better steer clients towards their investment goals using a “regret proof” policy. The policy could also be adapted by individual investors in managing their own portfolios. Here’s an excerpt from that article: Finding out how people tick is a vital part of the … Read More

Daniel Kahneman: The Illusion of Stock-Picking Skill

Johnny HopkinsDaniel Kahneman1 Comment

For the majority of stock pickers successful investing is thought to be based on some degree of skill. The truth is however that successful stock picking for most amateur and professional investors is due mainly to ‘luck’ not skill. Evidence of this can be found in Daniel Kahneman’s book – Thinking Fast and Slow. Kahneman is a psychologist notable for his … Read More

Is It Better To Buy The Stock And Watch The Price Drop Or Not Act And Watch The Price Soar? – Daniel Kahneman

Johnny HopkinsCharles Munger, Daniel Kahneman, Warren BuffettLeave a Comment

One of the most common predicaments facing investors is that they’ve analysed a stock, it meets with the investors criteria, and now it’s time to pull the trigger and buy the stock. But something happens, the investor ums and ahs and delays the decision to buy. Next thing you know three months later the value of the stock has risen by … Read More

What Should You Do With Under-Performing Stocks That You’ve Held For A Long Time? – Daniel Kahneman

Johnny HopkinsDaniel Kahneman1 Comment

One of the greatest challenges facing all investors is what to do with those under-performing stocks that have been sitting in your portfolio for a long time. Most investors prefer to wait until the under-performing stock gets back to its original purchase price, then they’ll sell it. The problem is if you hang on to those under-performing stocks for too … Read More

‘Noise’ is Costing Wall Street Billions – Daniel Kahneman

Johnny HopkinsDaniel KahnemanLeave a Comment

Daniel Kahneman is a psychologist notable for his work on the psychology of judgement and decision-making, as well as behavioral economics, for which he was awarded the 2002 Nobel Memorial Prize in Economic Sciences (shared with Vernon L. Smith). In 2015, The Economist listed him as the seventh most influential economist in the world. Kahneman has also written a number of … Read More