How to avoid painful investing pitfalls
16th March 2023 08:52
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Can you invest without emotion? Mick Dillon, of Brown Advisory, is one of the few fund managers to use behavioural finance biases as an integral part of his investment process. In this episode, he joins Kyle to focus on two in particular that cause us to make irrational investment decisions: inertia, which causes investors to place a higher value on something they own so are reluctant to sell; and loss aversion, which leads investors to hold on to an investment that has dropped in value in the hope it will recover.
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Books mentioned in this episode:
Nudge by Richard Thaler
Influence: The Psychology Of Persuasion by Robert Cialdini
Pre-suasion by Robert Cialdini
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