Enterprising Investor
Practical analysis for investment professionals

behavioral biases


Book Review: Pause to Think

This book is direct, delightful, and articulate in suggesting that we take a slow rather than fast approach to getting things thoughtfully done. It touches the minds and hearts of investment professionals.

Lessons in Behavioral Bias: The COVID-19 Equity Markets

The pandemic-era stock markets have been a showcase of behavioral biases in action.

10 Years of Behavioral Finance: Thaler, Kahneman, Statman, and Beyond

Since its launch in 2011, Enterprising Investor has showcased the scholarship of behavioral finance’s top luminaries as well as its critics.

Herd and Illusory Superiority Bias: Why Even Seasoned Investors Succumb

How do we check our investment decisions for signs of herd mentality, illusory superiority, or any other bias?

Dan Heath: Three Barriers to Upstream Thinking

"When no one owns a problem, it probably won't get solved."

How to Read Financial News: Home Country, Confirmation, and Racial Bias

We all have biases and blind spots, and it helps to listen to people who see things differently.

Meir Statman on Coronavirus, Behavioral Finance: The Second Generation, and More

How can behavioral finance inform our response to the coronavirus? Meir Statman gave his perspective on this and other questions.

Book Review: Behavioral Finance

This book is a succinct but comprehensive review of behavioral finance and how investors and practitioners can compensate for their biases to improve their financial decision making.

Emotions and Decision Making: Five Steps to Improve Your Process

The best defense against bad decisions is to fire up our System 2 thinking.

Emotions and Decision Making: Logic-Beating Biases

Why does emotion so often outweigh logic in decision making?