Posts filed under “Psychology”
My Sunday Washington Post Business Section column is out. This morning, we look at the differences between Outcome or Process focused investors.
The print version had the full headline Investing’s smart minority: The process people while the online version Outcome or process — what investment focus succeeds over time?.
Here’s an excerpt from the column:
“Has this ever happened to you?
In the course of a conversation, you learn about an acquaintance or colleague who made an unusually successful investment. For whatever reason, they put capital at risk into XYZ and the returns were extraordinary — far more than what is typical for your investment returns.
In that situation, which of the following comes closest to your immediate thoughts?
(1) I wish my 401(k) was filled with XYZ !
(2) If only I had his access to his inside information.
(3) How much time and effort goes into his research?
(4) What does his win/loss ratio look like? Gains vs. losses over time?
(5) Sounds like he got really lucky.”
The conceit of the article is that your answer reveals the type of investor you are likely to be, and suggests why one is superior to the other.
The Post did a very nice job in the dead tree version of the paper — the layout from page 1 of the Business section to the jump on page 4 really works.
Outcome or process — what investment focus succeeds over time?
Washington Post, February 23 2014
“What you are aware of you are in control of; what you are not aware of is in control of you. You are always a slave to what you are not aware of. When you’re aware of it, you’re free from it. It’s there, but you’re not affected by it. You’re not controlled by it;…Read More
Robert P. Seawright is the Chief Investment & Information Officer for Madison Avenue Securities, a boutique broker-dealer and investment advisory firm headquartered in San Diego, California. Bob is also a columnist for Research magazine, a Contributing Editor at Portfolioist as well as a contributor to the Financial Times, The Big Picture, The Wall Street Journal’s MarketWatch, Pragmatic Capitalism, and Advisor One….Read More
Essential to the mission of the Austin Institute is the dissemination of both thought-provoking and rigorous academic research on family, sexuality, social structures and human relationships. In order to engage a wider audience, we are developing select research projects into a medium amenable to our digital age.
Published on Feb 14, 2014
After a string of up days, most markets were showing red earlier today. We never know what the daily action of the markets will look like in advance. Whether you want to call it a random walk or the madness of crowds, those of us who toil in the capital markets can rely on no…Read More
“It’s going to blow up the deficit, won’t create any jobs and will cause all sorts of other problems.” A hedge-fund manager was lecturing me about the Jobs and Growth Tax Relief Reconciliation Act of 2003, better known as the Bush tax cuts. I had been suggesting that this fund close its short positions on…Read More
Jeremy Grantham’s quarterly GMO letter is out. It is a long rambling look at everything from Tesla to Fracking to Fertilizers to Food. But the narrative culminates with how as a young lad, Grantham made a trade based on a neighbor — legal inside information. He explains how that worked out, via his 8 lessons…Read More
Source: Monthly Chart Portfolio of Global Markets, Bank of America Merrill Lynch It seems that every 30 years or so, markets make what can be described as a “Generational Low.” We can define this as a capitulatory bottom, one that might be caused by a variety of factors, but usually includes some combination…Read More
This hour of Radiolab, a look behind the curtain of how memories are made…and forgotten.
Remembering is an unstable and profoundly unreliable process–it’s easy come, easy go as we learn how true memories can be obliterated, and false ones added. And Oliver Sacks joins us to tell the story of an amnesiac whose love for his wife and music transcend his 7-second memory