This presentation was originally prepared in Spring 2018 and has been revised for public posting.

Why do intelligent people still make costly financial mistakes? Such folly has seven common sources: survivorship bias, herding and familiarity bias, the narrative fallacy, authority and the halo effect, incentive problems, recency bias, and denial.

A good investment process should recognize these errors in advance to blunt their effects.

View the presentation:

Human Misjudgment and Its Financial Costs (PDF)

This material is provided for educational purposes only and should not be interpreted as personalized investment advice or a recommendation to buy or sell any security.

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