Investing Psychology Chapter 2: The Pain of Losing (Part 2)
Picking up from where we left off in Chapter 2. We’ve established that we’re all overconfident. Now let’s look at how that overconfidence turns into specific, expensive mistakes.
Hindsight bias
Hindsight Bias: The 'I Knew It All Along' Problem in Investing
David Beckham said “Hindsight is a wonderful thing.” Chapter 9 is the last of the belief perseverance biases in Pompian’s book, and it might be the most relatable one. Because we all do this. Every single one of us.