Studies abound showing how our mental biases thwart sound
Value Stock Guide has compiled the five main ways this happens into a nifty infographic (via Eddy Elfenbein).
You should check out the whole thing, but real quickly, the 5 common ways your
- You do what everyone else is doing because of herd behavior.
- You confuse "cheap" with "value."
- You throw good money after bad.
- You practice loss aversion and that leads to bad choices.
- You think the future is more unpredictable than it is.
Check it out:
