1. We seek information to reinforce our beliefs
- Most people dont really want to find evidence that their investments are a dog; they hate to admit
2. Selective perception prevents us from becoming fully informed
- We tend to seek out information that confirms the value of that holding
3. The ability to step out of ourselves to see the world from a different angle or perspective is hard
- Every buyer should be able to make a case for why that stock should be sold
4. Emotions get in the way
- Seeing the world without letting our own feelings color perceptions is a never-ending battle.
5. Objectively measuring data isnt our strong suit
- Compelling narratives can easily sway us, even when the facts say otherwise.
- We believe what we want to believe, regardless of the evidence.
One of the best blogs I've read in years. A must read for any serious trader. You can read full Ritholtz's article at Bloomberg https://www.bloomberg.com/view/artic...handle-reality
- Most people dont really want to find evidence that their investments are a dog; they hate to admit
2. Selective perception prevents us from becoming fully informed
- We tend to seek out information that confirms the value of that holding
3. The ability to step out of ourselves to see the world from a different angle or perspective is hard
- Every buyer should be able to make a case for why that stock should be sold
4. Emotions get in the way
- Seeing the world without letting our own feelings color perceptions is a never-ending battle.
5. Objectively measuring data isnt our strong suit
- Compelling narratives can easily sway us, even when the facts say otherwise.
- We believe what we want to believe, regardless of the evidence.
One of the best blogs I've read in years. A must read for any serious trader. You can read full Ritholtz's article at Bloomberg https://www.bloomberg.com/view/artic...handle-reality