When Investing, Consider Your ‘Confirmation Bias’

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By Barry Ritholtz - November 16th, 2009, 11:30AM

A recent study shows people are twice as likely to seek information that confirms their beliefs than they are to consider evidence that contradicts thems. WSJ Intelligent Investor columnist Jason Zweig tells Kelsey Hubbard how this “confirmation bias” can influence their financial decisions.

Comments

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data, ability to repeat discredited memes, and lack of respect for scientific knowledge. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

4 Responses to “When Investing, Consider Your ‘Confirmation Bias’”

  1. PhilD34 Says:

    See the book “Seeking Wisdom: Munger to Darwin” much more on this topic.

  2. Mike in Nola Says:

    How does one fight the bias that about 2/3 of Wall Street are greedy pr##ks? :)

  3. Jack Gavin Says:

    How is this any different from people who seek affirmation of their political, religious, (fill in the blank) beliefs? In my opinion, most people allow their beliefs (certainty of the unknowable) to supersede their knowledge of the facts.

    Some people call this insanity.

  4. AJB Says:

    My bias is that I am an idiot. Hard to shake it.

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