Behavioral Finance 101 (Part 3)

Key Points

  • First impressions matter; whether we like it or not, they guide our behavior and impact our decisions.
  • Primacy Bias is the notion that we often overemphasize initial events over longer-term averages when making decisions about uncertain future events.
  • When investing, the best way to combat these types of behavioral distortions is to conduct a complete (beginning, middle, and end), analysis of one’s investment performance.

Continue reading “Behavioral Finance 101 (Part 3)”

Why Invest Forever? (Part 7)

Key Points

  • The rich continue to get richer, where the top 26 richest humans now control more wealth than the bottom 50%, based upon recent research from Oxfam.
  • Wealth has the capacity to grow exponentially after reaching a tipping-point, which can lead to a strong concentration of wealth among a small percentage of owners.
  • If you can’t beat ’em, join ’em.

Continue reading “Why Invest Forever? (Part 7)”