Category: Behavioral Finance

Outperforming the market is hard. Over the last five years, it was easy. Easy if you owned just one stock. The world’s largest. You just had to buy

If successful investing was as easy as acting on the headlines of the financial press or the latest stockbroker bulletin, we’d all be wealthy indeed. Very wealthy and

Not many investors have been likened to Warren Buffett in their investment career. Besides numerous other aspects, you would need to have an incredible track record for one,

What if I told you that there was a guy who has a degree in History, who, when he started his career in investing not only did not

There are many impossibilities in life. And I’m sure you’ve heard of some of them – to live forever, to travel at the speed of light, or even

If you’re a fan of Warren Buffett you’re probably aware that for the last forty years or so, he’s admonished the merits of investing in airlines. It’s little

Would you consider $300,000 a fair price for a book? Charlie Munger did, and he even considered it ‘light’ payment, considering the billions he made from the learnings

Facts are important. They are the fundamental truth that allows us to make decisions. They allow us to determine what is right and what is wrong. They help

Who doesn’t love a story? Those tales of woe and drama, intrigue and suspense; and the better the storyteller the more we’re usually hooked. Stories sell. We often

  “That whole idea that you own a business, you know, is vital to the investment process.” Warren Buffett   Between the ages of 11 and 19, Warren

The financial market is an information jungle with constantly arising dangers, opportunities, delusions, and discoveries. How to increase the chances not only to survive in this severe environment

We all know how important an understanding of psychology is to sound investment practices. And when Charlie Munger espouses the virtues of someone he considers a leader in

You will have noticed, no doubt, my belief that the information we use to make investment decisions comes from a variety of sources. The data is lurking out

One of Warren Buffett’s most famous sayings is: “To be Successful in the Stock Market, Be Fearful When Others Are Greedy and Greedy When Others Are Fearful.” The challenge for

Many inferences have been drawn over time between the Market and Business. This is nothing new to any of us and we have seen it often. The analogies

We’ve spent some time in recent posts going over many of the similarities that exist between the methodology and practices of the great Investors. Most of these people

In the history of mankind, no single nation has developed, grown and innovated like the United States of America. No other country on Earth can boast what they

There is no denying that humans like to takes risks at times, especially when there is a reward waiting for us at the end of it. Yet, every

What if learning how to be a successful investor was more than learning about finance and economics? What if other fields of study played a major role in

October 15, 2014 was a rocky day for investors in the stock market, which at its lowest point dipped 460 points, close to “correction” status. A late-day rally saw

While behavioural finance is a relatively new field of study, it is one that has a profound effect on the fiscal marketplace. In simple terms, of course, behavioural finance

One of Warren Buffett’s favorite investment books of all time is Common Stocks and Uncommon Profits by Philip A. Fisher. Buffett has credited this book as a great influence on

This post was originally published on Call Levels. The field of behavioral finance was validated when the 2002 Nobel Memorial Prize in Economics was awarded to psychologist Daniel

Our brains are incredible things. Every minute of every day our minds absorb tremendous amounts of new information. Some of this information we consciously think about, question, work on,

Regardless of your political beliefs, Donald Trump’s presidential victory on Tuesday night was definitely a shocker. But as Barry Ritholtz over at The Big Picture notes, “One of