Born Suckers
Tuesday, December 14th, 2004
Henry Blodget explains how “human beings are wired to make dumb investing mistakes. What’s more, we are wired not to learn from them.” Self-attributuion bias, the gambler’s fallacy, prospect theory, outcome bias, hindsight bias, conservatism and confirmatory biases, plus Warren Buffett’s rearview mirror all combine with that worst human trait of all - overoptimism.
