When we begin working with new clients, we try our best to explain investing is (to some small degree) a participation sport. Clients need to be involved! And for the most part, clients get it. I’d like to believe we do a good job of explaining what’s needed and we stay in good contact. But… [Read More] Coercion versus Changing Behavior
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.
My dad used to tell me before my baseball games, “ya know Case, you play baseball against yourself”. I didn’t really get it at first. But the more he said it and explained it to me, the more I understood. You play baseball to the best of your abilities. If you do that, it doesn’t… [Read More] You Invest Against Yourself
On a recent episode of Hidden Brain, host Shankar Vedantam discusses a book by Alison Gopnik called The Gardener and the Carpenter. Alison uses an analogy between gardeners and carpenters to explain modern approaches to parenting. To summarize: Carpenters have the ability to make their workshops into an ideal creation space. They control many variables:… [Read More] Investors are Like Gardeners, Not Carpenters
To conform is human. During the Stone Age, our ancestors learned to fit in with their tribe. If they didn’t adopt the tribal culture, they were banished. Being banished was essentially a death sentence, so humans learned that fitting in was a pretty solid survival technique. This desire to conform has since baked itself into… [Read More] Don’t Invest Like the Rest
With most charts, your eyes scan from left to right. But not this one. Look all the way to the left to see the mania we call today “Bitcoin” Chart originally appeared in the Wall Street Journal, November 29, 2017 in the article titled “Bitcoin Mania: Even Grandma Wants In On The Action”
You can’t take a swim without getting wet. I recently finished reading Professor Scott Galloway’s, The Four. If a deep dive into Amazon, Apple, Facebook, and Google sounds intriguing to you, definitely check the book out. I’m actually going to relate a passage from The Four to the idiom shared above. Galloway says in The… [Read More] Embrace the Uncertainty