Behavioral finance biases

A quick look at a few behavioral biases and how they effect our financial returns

  1. Asset Allocation and Information Overload: The Influence of Information Display, Asset Choice, and Investor Experience

    (2005). Asset Allocation and Information Overload: The Influence of Information Display, Asset Choice, and Investor Experience. Journal o...

  2. How Framing Changes your Decisions: evidence that losses hurt more

    A excerpt that shows how something as small as the way we are presented with an offer, can dramatically change the decisions we make.

  3. Overconfidence in a corporate setting

    Hubris, or overconfidence has many roles in a corporate setting. On one hand, overconfidence leads to entrepreneurs being more willing to...

    1 min read
  4. The Overflowing Brain: Information Overload and the Limits of Working Memory

    A book that gives some insight into the history and problem if information overload. As the pace of technological change accelerates,...

  5. List of cognitive biases that impact our financial decisions

    Cognitive biases are tendencies to think in certain ways. Cognitive biases can lead to systematic deviations from a standard of rationali...

  6. How Information Overload Impacts Your Brain

    Scientists go on vacation to study what happens when you unplug from technology

  7. Believe what you want

    People put more credibility in what they want to hear

  8. Types of Heuristics: Availability, Representativeness & Base-Rate

    Great stuff! Taught by Polly Peterson Heuristics We make decisions and judgments every day - if we can trust someone, if we should do ...

  9. Terrance Odean on overconfidence and investor returns

    Short version? Overconfident have LOWER returns.

  10. Overconfidence Bias can lead to more fraud

    Overconfident managers are more likely to commit fraud than others. This video is relatively simple, but a good reminder of yet another ...

  11. Are Overconfident Executives More Inclined to Commit Fraud? - Knowledge@Wharton

    In a word, Yes. Are Overconfident Executives More Inclined to Commit Fraud? by Knowledge@Wharton, the online business journal of the...

  12. Home Country Bias Too Close to Home-Kiplinger

    If only familiarity did breed contempt, we might all be better investors. But the reality is just the opposite: Familiarity breeds conten...

  13. More evidence of overconfidence leading to lower returns

    Why is there so much trading? One reason is overconfidence. This is especially a trait (and practice) found in males.

  14. Investors' 10 Most Common Behavioral Biases

    Barry Ritholz (of The Big Picture and a Sunday Business columnist at The Washington Post) recently contributed Investors' 10 most common ...

  15. The Hubris Hypothesis of Takeovers

    Why do firms take over firms that are already "correctly" priced? Why do they overpay? One reasons that was suggested by Richard Roll i...

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