As per my earlier post, I am currently reading the book entitled Charlie Munger : The Complete Investor, by Tren Griffin (click here to see more). While I am still half way through the book but there is one psychology bias or tendency that caught my eye, and it’s called : Lollapalooza Tendency.
The reason it caught my eye is because the word seems exotic and odd sounding! :-) And when I googled the term, the first in the search result is an annual music festival at United States! Not helping…hahaha.
In any case, I believed this is a term coined by Charlie Munger to remind the investors the importance of psychology biases when comes to investing.
As per the book, it (Lollapalooza Tendency) is briefly explained as:
“The tendency to get extreme confluences of psychological tendencies acting in favor of a particular outcome”
Of course, …