Originally posted on Above the Market:
Barry Ritholz (of The Big Picture and a Sunday Business columnist at The Washington Post) recently contributed Investors’ 10 most common mistakes to The Washington Post Business Section quarterly investing section. It’s a commentary that he has been working on for a while — the ten topics are listed with links to longer discussions of each common mistake here. I created my own investing “checklist” (here) in response to Barry’s original list. For yet one more iteration of the theme, I offer my list of Investors’ 10 Most Common Behavioral Biases. There are a number of others, of course, and more will continue to be uncovered. But I think that these are the key ones. Your suggestions of important ones I have missed are welcome.
- Confirmation Bias. We like to think that we carefully gather and evaluate facts and data before coming to a conclusion. But we don’t. Instead…
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