According to the definition found at Neuropsychotherapist.com, the prefrontal cortex “…region of the brain has been implicated in planning complex cognitive behavior, personality expression, decision making… ” Maybe a part of our brain stops us from becoming better investors? So, help me reconcile this quote from Warren Buffett: “There seems to be some perverse human characteristic… [Read More] The Prefrontal Cortex, part I
We believe that an investor's behavior can seriously impact their market returns. This category page is dedicated to informing our readers of certain behaviors that are known to damage investor's returns over time. We also discuss strategies to avoiding these damaging behaviors.
In the movie A Quiet Place, the story follows the Abbott family. The Abbotts live in a post-apocalyptic world that has been decimated by extraterrestrial creatures who hunt by sound. As we quickly learn in the first few minutes of the film, the family’s survival is dependent upon silence. Anybody who makes even the slightest… [Read More] Negative Space: Why It Always Feels Like the Top
“Melinda Gates’ children don’t have smartphones and only use a computer in the kitchen. Her husband Bill spends hours in his office reading books while everyone else is refreshing their homepage. The most sought-after school in Silicon Valley (the Waldorf School of the Peninsula), bans electronic devices for the under-11s and teaches the children of… [Read More] Habits of some very Wealthy Families
You cannot watch a baseball game these days without hearing about a batter’s launch angle. Launch angle is the measurement of a batted ball’s vertical trajectory. Since 2015, hitters have begun optimizing their swings for the ideal launch angle (25-35 degrees). This is because research has shown that balls hit within that range are more… [Read More] Today’s Edges, Tomorrow’s Table Stakes
I just finished reading AstroBall, the story of how the Houston Astros baseball team was torn down and re-built from the ground up. Good story, quick read, and written by Ben Reiter of Sports Illustrated. Reiter was the author of a Sports Illustrated cover story that predicted – in 2014 – that the Houston Astros… [Read More] Four Reasons Why Carlos Beltran Would Make a Good Advisor
Creating a portfolio without making an investment policy statement means failing to acknowledge that investing is an emotional endeavor. For those of you who don’t know what an investment policy statement is, let me begin with a story: In Homer’s epic, The Odyssey, the hero Ulysses must sail past the Sirens to reach his home.… [Read More] Why You Need an Investment Policy Statement