Investors tend to overweight information that confirms their existing beliefs from "summary" of The Little Book of Behavioral Investing by James Montier
Investors have a tendency to place more weight on information that supports their current beliefs. This confirmation bias leads them to seek out evidence that aligns with what they already think, while disregarding or downplaying any conflicting data. This can be a dangerous pitfall in the world of investing, as it can prevent investors from objectively evaluating new information and adjusting their strategies accordingly. When investors only focus on information that confirms their existing beliefs, they may become overconfident in their decisions. This overconfidence can lead them to take on more risk than is p...
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