UNDERSTANDING BEHAVIORAL FINANCE
The field of behavioral finance has exploded over the past few years, making it a go-to topic for education providers. While the human brain may be endowed with an amazing capacity for abstract, rational thought, it is often betrayed by our primitive emotions of fears and greed.
So how does one become a star investor?
“It’s not about spreadsheets,” said Michael Mauboussin, chief investment strategist, Legg Mason, speaking at the recent Morningstar Investment Conference. “Rather, it’s all about temperament; the ability to make good decisions under all conditions – especially fear and greed. Most of us, however, are not good at this.”
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Posted by BEYOND RISK at 6/16/2010