These Five Cognitive Biases Hurt Investors the Most

https://www.visualcapitalist.com/five-cognitive-biases-hurt-investors/

 

Our inbuilt motherboards are hardwired at birth, yet the good news is, they display neuroplasticity over time. We create faster and more efficient neuron networks, that fire even quicker, require less voltage and of course, energy.

The bad news? This quick thinking, versus slow may result in cognitive biases. These pervasive thought patterns become embedded and may have an impact on all kinds of decisions.

Confirmation and recency bias tend to skew our ability to objectively view investment choices, super funds, sporting feats and more.

Being mindful of these mental shortcuts is half the battle. Stepping back and ‘thinking slow’ by volition, in a considered fashion, may also serve us well.

 

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