In recent years, behavioral finance has become really popular. But taking a step back, one of the biggest questions we have about this field is -- “So what?” There are so many behavioral finance theories. But where is the practical application? What can we actually do with this stuff?
In “Training the Investor Brain,” we talk about some of those theories that help explain why sometimes investors make poor choices. And, just as important, we share practical tips and tools you can use starting today that are designed to help you be more rational and long-term focused.
It’s important for us to understand some of the more devastating investing biases so we can exploit them. Now that’s a strong word – exploit – yet, it’s exactly what we want to do. We will look at some situations that offer opportunities for us to take advantage of others’ behavior. Yet everything I share today comes with an important disclaimer. Think about this: we cannot really help ourselves if we succumb to the very biases we seek to exploit.
WE have to remain objective and rational when others are short-sighted and emotional. Sure, that sounds great, right? But how? How are we supposed to do that? Again, we will look at some tools and stories that might help you.
Welcome to “Training the Investor Brain.” Disclosures
No investment strategy can assure a profit or protect against loss.
The foregoing reflects the thoughts and opinions of Brandes Investment Partners® exclusively and is subject to change without notice. Brandes Investment Partners® is a registered trademark of Brandes Investment Partners, L.P. in the United States and Canada.