Why Investing Is Hard: We don't practice enough

People have a hard time with investing because they simply just don’t do it enough. We don’t commit the time to learn and practice the skill. If we’re not engaged in the process, we will not receive meaningful feedback and we will be less likely to improve our development.

Read More

Behavioural Finance: The Endowment Effect

A while ago, I learned that Richard Thaler, considered one of the pioneers of the Behavioural Economics had published a new book called “Misbehaving: The Making of Behavioral Economics”. Mr. Thaler presents some very profound insights on investor behavior that resonated with me. So much so that I will be sharing some of these concepts in this and subsequent blog posts and at the same time tying them into some of my own personal behaviours and experiences to just give this some colour. The first of Mr. Thaler’s observations revolves around the concept of the Endowment Effect.

Read More

Controlling Your Emotions When An Investment Goes Wrong

We have all experienced it and even the greatest investors of all-time have also experienced it. The realization that the stock we spent an inordinate amount of time analyzing is not going to increase in value the way we thought it would and that we are going to have to bite it and sell it at a loss.  

Read More