Part 2

Understanding Human Behavior and Biases

One of the most interesting components of investor psychology lies in its counterintuitive nature. Investing after a significant drawdown has the potential to pay off handsomely. There’s a consistent pattern of quality returns if you invest in the strategy of a decline of 15% of more. Investors in the strategy roughly double the market’s long-term average returns. “It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait,” Charlie Munger has said.

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Beginner icon
Beginner
Investor Psychology 100
3 Lessons
~15 mins in total
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