Once we take ownership of an idea whether it's related to politics or sports or investing a lot of changes take place. We probably fall in love with the idea more than we should. We value it for more than it's worth. And quite often, we have trouble letting go of it because we can't [...]
The market encourages all kinds of anchoring. The price at which you bought a stock is very vivid in your mind, but in reality you'd be much better off if immediately after the purchase you forgot the price you paid. We also ascribe importance to 52-week highs and lows, but why that? It would make [...]
With investing, focusing on what's already happened is generally a bad strategy. The decision at any point should be only about looking forward. Just adjusting how you set up your spreadsheets and what you track on reports could help in this regard.
I don't think you can overstate how careful we have to be about the incentives of people who make decisions that affect us or who give us advice. When you see conflicts of interest, it's a very good indicator that something is going to go very wrong, very soon. One of the best remedies here [...]