When Choosing Investments, Avoid Past Performance Bias
Prairie Eco-Thrifter
JULY 17, 2014
'As humans, we have a number of biases that can trip us up when it comes to money. When it comes to choosing investments, one of the more problematic biases is “past performance” bias, in which you make decisions based on the recent past of an asset. Relying too heavily on past performance can make you too confident about an investment, or it can discourage you from investing in something you should consider.
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