“Why evolution has made us bad investors”

patternsWe evolved looking for patterns to survive. But the modern brain doesn’t distinguish between patterns and simple random stuff.

By SensibleInvesting.tv* : “Financial author and theorist William Bernstein on why humans just aren’t cut out to be good investors. Our emotions and instincts are invaluable if we are faced with a fierce tiger, but not at all helpful when it comes to making the best investment decisions. Most people don’t understand that changes in financial information are random and can’t be predicted, a misconception that invariably leads us to do the wrong thing at the wrong time.”


*Copyright SensibleInvesting.tv … more videos may be found there to explain more about Passive Investing.

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