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Biases in Investing (25 Sep 16)
By Ernest Lim's investing blog  •  September 25, 2016
“I’m an idiot. I shouldn’t have sold off ‘Stock A’. I just know that it will rocket upwards in the next few days. And now it has surged. It is so obvious. I should have seen it coming” Do the above sentences sound familiar? If yes, then you probably have a hindsight bias. Biases are typically insidious and can affect and distort our thinking and interpretation of data and choices without our knowledge, thus we have to be wary of the biases and act accordingly. I was recently asked by Lianhe Zaobao (please refer to their article HERE dated 25 Sep 16) on some examples of biases seen in investing. Consequently, I have put together a write-up below and will seek to demystify the insidious biases which may cloud our judgment and affect our investment decisions.
  1. Equity home bias
Definition: Equity home bias refers to the biased perspective ......
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By Ernest Lim's investing blog
I am an avid investor, trader cum remisier. I am a Chartered Financial Analyst® charterholder, as well as, a Chartered Accountant of Singapore. I have published articles on a wide range of topics on finance and investment, ranging from market / sector outlook, technical analysis and fundamental analysis etc.
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