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When evaluating our investments, behavioral finance offers insight into why we often stick with the status quo. Even when underperforming, many investors, including sophisticated ones, tend to stick with strategies that are too risky, too expensive, or too often try to time the market. Read our latest blog post about how the Endowment Effect and self-efficacy affect everyday investment decisions.
Read MoreThe behavioral biases that cause us to ignore overwhelming odds and fill out March Madness brackets are innate. They’re also the same traits that lead to illogical investment decisions. Learn more about how the Affect Heuristic and the Illusion of Validity influence our investment decisions in the same way they make us cheer on underdogs, and root for teams we may have never followed before.
Read MoreWhile some LPs may applaud Sequoia’s move to consolidate investments into an open-ended vehicle, blurring the lines between what makes a private market and public market manager successful may only lead to disappointing results.
Read MoreThe hype around GameStop and r/WallStreetBets may have a hint of deja vu for those who were trading stocks in the late 90s. Fortunately, behavioral finance provides valuable insight into why history seems to be repeating itself and why NextGen day traders may not be so different than those professional investors on Wall Street they’re determined to beat.
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