Posts tagged Behavioural Finance
Three Ways To Think About Risk
Three Ways To Think About Risk

Investors typically think of risk in terms of liquidity, currency, country, political, interest rate, foreign exchange, and others. But it's helpful instead to think of risk in terms of known knowns, known unknowns, and unknown unknowns. This different perspective on risk can help you spot weaknesses in your portfolio, and give you time to mitigate them before it's too late.

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The ETF DaddyRisk Management, Portfolio Management, Project Management, Known Knowns, Known Unknowns, Unknown Unknowns, Donald Rumsfeld, Electric Cars, Beyond Meat, Gender Investing, Emotional Biases, Cognitive Biases, Behavioural Investing, Behavioural Finance, Geoffrey LearmonthComment
11 Cognitive Biases All Investors Should Know

Cognitive biases occur when we acquire and process information by filtering it through one's own likes, dislikes, and experiences. As I imagine my favourite astrophysicist, Neil DeGrasse Tyson, saying, they are “brain failures”. But knowing about them is a good start because if you can identify which ones you are susceptible to, you stand a good chance at overcoming them and making smarter investment decisions.

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The ETF DaddyBehavioural Finance, Anchoring Bias, Availability Bias, Ambiguity Aversion, Confirmation Bias, Conservatism Bias, Framing Bias, Hindsight Bias, Mental Accounting, Overconfidence Bias, Recency Bias, Representativeness Bias, Self-Attribution BiasComment
Gender Investing

In this article on behavioural finance, we take a look at how men and women differ in their investing styles, both from a cognitive and emotional bias point of view. We discuss overconfidence bias and status quo bias, and how being aware of what biases you are susceptible to is a key advantage in either moderating or adapting to them in order to achieve better portfolio returns.

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The ETF DaddyBehavioural Finance, Gender Investing, Cognitive Bias, Emotional Bias, Overconfidence Bias, Loss Aversion Bias, Availability Bias, Cognitive Dissonance Bias, Endowment Bias, Status Quo Bias, Representativeness Bias, Regret Aversion Bias, Investor PersonalitiesComment