Dr Kahneman was asked what fools us most frequently. That was simple, he said: overconfidence
"It's the idea that you know better than the market, which is a very strange idea," Dr Kahneman told The Washington Post. "Individual investors have no business at all thinking they can do better."
So beware of low liquidity stocks and there are reasons for being unloved by the market unless you think Dr Kahneman is talking rubbish.
Posts
2025 Q1 Portfolio Update: Decent 3.5% return YTD and beating the S&P 500
over a 51 months period
-
There were some expectations that 2025 isn’t going to be a very good year
for equities. Little did we know that it is on course to be a…
The post 2025 Q1...
3 hours ago
True to some extent, i guess this is one of the main reasons to go with Index investing.
ReplyDeleteBtw...any idea if this Dr Kahneman is referring to Daniel Kahneman? If i'm not wrong, i think alot of research on "value" is based on his work many years ago.
Princeton University psychologist Daniel Kahneman was awarded the Nobel Prize in Economics for, as the Swedes put it, integrating "insights from psychology into economics, thereby laying the foundation for a new field of research."
ReplyDeleteYup, that's him i guess. ;)
ReplyDelete