Human beings have lots of “mental blind spots” that make successful investing hard. Dan Ariely wrote about a bunch of these in his book “Predictably Irrational”. There’s lots of great info in the book that shows you how these blind spots work. In this episode, We’ll explore two of these blind spots:

• Endowment Effect  
• Arbitrary Coherence  

The Endowment Effect causes people to fall in love with the things they own …and if you fall in love with an investment, it’s hard to be rational about it. Arbitrary Coherence is all about how prices become “sticky” in your brain. That can cause you to start thinking that something is a good deal when it really isn’t. 

Those concepts might seem a bit fuzzy, but in the episode, we explore them in depth with lots of stories and examples. Check out the episode to learn about how they work, and tips on avoiding their subconscious influence.

Sources:

Podcast website:

Wall Street Vision Investing Podcast

Get in touch with Vlad:

Wall Street Vision – Contact

Disclaimer:

This podcast is for entertainment purposes only and should not be relied upon as the basis for investment decisions. Before making any decisions, consult a professional. I may maintain positions in the securities discussed on this podcast. This show is copyrighted by the Wall Street Vision, written permission must be granted before syndication or rebroadcasting.