People are really crazy about minor decrements down. Huge insanities can come from just subconsciously over-weighing the importance of what you’re losing or almost getting and not getting…

— Charlie Munger One of prospect theory’s most important contributions to finance is loss aversion, the idea that for most people, losses loom larger than corresponding gains. The empirical evidence suggests we feel losses about two to two-and-a-half times more than we feel gains. Loss aversion is a clear-cut deviation from expected utility theory.” —

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Think of it this way: By entertaining some mindful decision-making about your investments, you just might eliminate any fears and anxiety you may have about your financial future. How’s that for a payoff? …

Dividends still don’t lie p. 6 The three activities [for successful investing] are nothing more than being mindful about your investments and investment decisions. You put thought and consideration into other critical areas of your life, why shouldn’t you do the same about your investments? Think of it this way: By entertaining some mindful decision-making

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