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Showing posts from March, 2022

The information fallacy and how to overcome it

  Despite the enormous amounts of data and numbers that are available and get looked at, investing for most people still is driven more by emotions than rational thinking.  A fundamental reason behind this is that most individuals would look at information, process it and make an investing decision all by themselves. Meaning there is no one other than yourself that you have to convince before making this decision. The flaw with this is that you are the easiest person to convince and there's hardly any objection to your story that you are so convinced of. This is especially exacerbated if you spent a lot of time researching the said company that you are trying to invest in.  The thought in our minds being " I have looked at so much information about this company, surely I understand the business very well by now. Others don't realize the opportunity that I do, maybe because they haven't studied it like me. I understand the risks with the business and I should definitely