UNDERSTANDING AND TACKLING INVESTMENT BIASES: ENHANCING FINANCIAL DECISION-MAKING

Michael Espinosa 

The road to successful, long-term investing is riddled with behavioral biases that can significantly impact our financial decisions. These ingrained biases often lead to suboptimal outcomes, fostering what is known as the “behavior gap” — the disparity between the potential returns an investment can offer and the actual returns an investor achieves due to emotional decision-making. Recognizing these biases is the first step toward mitigating their influence, enabling us to make wiser, more informed investment choices. In this article, we delve into five common biases, explore how they affect investment decisions and present strategies to Please log in to see the rest of this story.