Nick,
Thank you.
I'm glad that the field of behavioral finance is shifting from diagnosis to recommendations. We all know that biases are a problem, but the hard part is developing a process to mitigate our processes.
The two most important things in my process are:
1) Stress-testing ideas with peers: My friends are happy to tell me what I'm doing wrong, provided that I will listen.
2) Read financial news critically and systematically: I wrote a series for the CFA Institute about "How to Read Financial News." The key steps are to understand consensus, separate the narrative from the noise, and avoid memory contamination. I'll put the link below.
Thanks again for the review. Kudos to anyone who uses "dispositive" correctly.
: )
Sincerely,
Rob
"How to Read Financial News", Enterprising Investor, Rob Martorana:
https://blogs.stage.cfainstitute.org/investor/tag/how-to-read-financial…