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Human behavior often leads to irrational decisions in investing from "summary" of Against the Gods by Peter L. Bernstein
Throughout history, human beings have displayed an uncanny ability to make decisions that defy logic when it comes to investing. This phenomenon is not limited to a particular time period or culture; rather, it is a universal trait that seems to be ingrained in our very nature. As Peter L. Bernstein eloquently explains in his book 'Against the Gods', our irrational tendencies often lead us astray when it comes to managing our finances. One of the key reasons behind this irrational behavior is our inherent biases and emotions. We are prone to making decisions based on fear, greed, and overconfidence, rather than cold, hard facts. This can lead us to ignore critical information or make impulsive choices that ultimately harm our investment portfolios. As Bernstein points out, our emot...
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