Posts filed under “Psychology”

NorCal FPA: This Is Your Brain On Stocks

This is the presentation I gave this week out in San Francisco:

Category: Cognitive Foibles, Investing, Psychology, Think Tank

What is it going to take to kill this species off?

Why do we pay attention to the most dire of forecasts? I pulled this from a 2011 piece I wrote: “You humans are a hardy breed. No matter how dire the circumstance, your species has managed to prosper. You survived the Ice Age, the Dark Ages, the Middle Ages, the Age of Aquarius (as well…Read More

Category: Humor, Investing, Psychology

What ‘This Time It’s Different’ Really Means

Investors must recognize what ‘this time it’s different’ really means Barry Ritholtz, Washington Post May 18, 2014     “The four most expensive words in investing are: ‘This time it’s different.’” So said Sir John Templeton, the legendary investor and mutual fund pioneer. The phrase contains tremendous wisdom, but only if you truly understand what…Read More

Category: Apprenticed Investor, Investing, Psychology

Behavioral Test: What Are the World’s Deadliest Animals?

Source: Gates Notes   Continues here  

Category: Digital Media, Psychology, Science

You Don’t Understand Risk.

You don’t understand risk. I don’t mean you, in your professional capacity. I mean you, the human being whose brain is desperately trying to keep you alive. An endless procession of mortal threats are trying to end your particular genomic variation, forcing your brain to respond first and think later. Your existence is threatened by…Read More

Category: Investing, Psychology

When is ‘this time’ really different?

    My Sunday Washington Post Business Section column is out. This morning, we look at a famous aphorism from Sir John Templeton. The print version has the hedder When is ‘this time’ really different? while the online version used the fuller Investors must recognize what ‘this time it’s different’ really means. The column tries…Read More

Category: Apprenticed Investor, Psychology, Quantitative

Preview: What Does “This Time Is Different” Really Mean?

This is a preview of an upcoming column.     “The four most dangerous words in investing are: ‘this time it’s different.’ “  -Sir John Templeton What do these words actually mean to investors today? As of late, more than a few pundits have been misinterpreting their meaning. With a wave of a hand, they…Read More

Category: Investing, Psychology, Valuation

Do You See the Positives or Negatives?

The Standard & Poor’s 500 Index hit an all-time high yesterday, closing at 1,897.45. The Dow Jones Industrial Average also hit a record, ending at 16,715.44. This should be tempered by noting that the Dow is up less than 1 percent so far this year, while the S&P 500 has gained about 2.7 percent. One…Read More

Category: Data Analysis, Earnings, Psychology, Sentiment, Valuation

>   My Sunday Washington Post Business Section column is out. This morning, we look at the motivations of various market commentators. The study of investor bias and psychology has long fascinated me. This column revisits the subject of different roles investors must play in order to confront these problems. I tangentially mentioned this in…Read More

Category: Apprenticed Investor, Financial Press, Investing, Psychology

Amateurs versus Professionals

AMATEURS Have tons of ideas, are excited about all of them and see none to fruition. PROFESSIONALS Have tons of ideas, pick one and do their best to make it happen. AMATEURS Think they can do everything. PROFESSIONALS Know it’s almost impossible to achieve one thing. AMATEURS Think they know everything. PROFESSIONALS Are always learning….Read More

Category: Psychology, Think Tank