Below is my presentation: The High Cost of Neuro-Financial Errors: How Cognitive Bias and Performance Chasing leads to Investing Failures at the Trustee Leadership Forum for Retirement Security conference at the Kennedy School, Harvard University June 10, 2013.



Cambridge is simply lovely . . .

Category: Hedge Funds, Investing, Psychology

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

6 Responses to “Romancing Alpha, Forsaking Beta”

  1. MayorQuimby says:

    Truly excellent!

  2. Malachi says:

    Awesome. Truly.

  3. [...] began with the research I did for Romancing Alpha, Forsaking Beta, and has led to other interesting places. But as we have learned, some things are not as they [...]

  4. mpappa says:

    This post made my day. Extraordinary.

  5. [...] Presentation: The high cost of neuro-financial errors, how cognitive bias & performance chasing … Discusses behavioral economics & investor psychology, including habitual “romancing alpha & forsaking beta.” Chart shows SPX forward EPS consensus forecasts (1985-2008) consistently higher than actual earnings in 22 of 25 years (except 2004-06), with average estimate for EPS growth 100% higher than realized (historical average has been a 6% growth rate). [...]

  6. [...] Earlier this Summer, I gave a presentation to a room full of public pension trustees at Harvard (about 1.7 trillion dollars worth, not counting Calpers). Its called “Romancing Alpha, Forsaking Beta” — you can see it here. [...]