During this earnings season, I've been watching some of the prices of stocks I own react both positively and negatively in what seems to be somewhat irrational ways to the earnings announcements.
This article hit home with its reminders of the role that human psychology plays in investing.
I think it is interesting to take the topics discussed and think about specific decisions your investment club has made or is making. How much are some of these psychological biases affecting your decisions?
When I think about my own clubs decisions, I think they are easy to see. I don't think they are as easy to avoid, but I think the more we are aware of them, the better we can get at investing.
Laurie Frederiksen Invest with your friends! www.bivio.com