Thursday, July 13, 2017

Book Review: Priceless

This is a very entertaining and easy read. Not much prior background knowledge required, but you will gain a lot more insights if you do.

Specifically relevant to investing, you will gain an insight as to why price trends occur in all markets, how and why market bubbles form, and how/why this has and will repeat themselves.

The reversal preference experiments show clearly why many investors (including myself) hang on to losses and cut their winners too early.

The anchoring and adjustment experiments will be known to many of us. However, I think many will miss the essential lesson- being that anchoring and adjustment is an artifact of guessing. With investing, there will always be a degree of guessing, so the challenge is to be able to deal with effects of anchoring and adjustment.

Enjoy and Prosper
Yours One-Legged