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

20 Of The Best Books On Investor Psychology – All Time

Johnny HopkinsInvesting Books, Investing PsychologyLeave a Comment

We recently started a series called – Superinvestors: Books That Every Investor Should Read. So far we’ve provided the book recommendations from: Charles Munger: 32 Books That Every Investor Should Read Seth Klarman: 32 Books That Every Investor Should Read Warren Buffett: 35 Books That Every Investor Should Read Bill Ackman: 11 Books That Every Investor Should Read Joel Greenblatt: … Read More

Howard Marks: The Pendulum of Investor Psychology

Johnny HopkinsHoward Marks, Investing PsychologyLeave a Comment

We’ve just been reading Howard Marks’ new book – Mastering The Market Cycle. In it there’s a great chapter titled – The Pendulum of Investor Psychology which discusses the impact of investor psychology on markets. Marks writes: One of the most time-honored market adages says that “markets fluctuate between greed and fear.” There’s a fundamental reason for this: it’s because … 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