Classification of decision-making biases and errors in the above article.
Top 10 biases in the article. Brief descriptions and in-depth articles included/linked in the article.
My views w.r.t Behavioral Finance - Don't go overboard reading tons of books/articles on this stuff, but observe the most common/impactful mistakes you're making, and others too, study the reasons behind them, and improve the process so that you can minimize those mistakes.
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When people say "Valuation doesn't matter" is precisely the time we need to be more cautious and know the difference between (Intrinsic) Value & (Mkt) Price.
Excellent Site based on A. Damodaran's "The Little Book of Valuation"👏
✔️Intrinsic versus Relative Value
✔️Time Value of Money and concept of Discounting
✔️Accounting 101
✔️Mechanics of using Intrinsic Value versus Relative Value
Characteristics, Value Drivers & how to Value Co.'s in various stages of their Life Cycle
Investing in its purest sense (Analysis of Intrinsic value, buying with Margin of Safety) has been out of fashion recently, but here's an excellent resource for anyone interested in learning the core concepts.
h/t @Vintage_Value👏
On Seeking Alpha, "Integrator" (not sure about Twitter presence) is one of my favorite authors along with @FromValue @andrescardenal @EconomyApp
Bert Hochfeld
👏👏
Few of my fav articles of his.
1⃣ The 5 Elements That Make For An Outstanding Business
-Seek Economic Moats in any investment
-Having an awareness of your circle of competence
-Investing for the ultra long term
-Take advantage of a bargain hiding in plain sight
-Preservation of Capital, Above all
3⃣ 5 Common Mistakes In Evaluating High-Growth Companies
-It has already gone up so much.
-Fearing short interest
-Fearing future Competition
-Fearing stock dilution due to secondary offerings
-Fearing current losses
LESSON #1: Government policy can greatly affect your investment portfolio, for good or ill.
LESSON #2: Bull markets climb a wall of worry.
LESSON #3: Don’t fight the Fed. Adjust your portfolio when money is tight, and again when money is easy.
LESSON #4: Gold is money and the best insurance against an inflationary future and bad government policy, but don’t go overboard buying gold. (Not for everyone, but the author mentions that it should be done only as insurance. I guess Bitcoin is the proxy for it these days).