How should you pick the best mutual funds?
- Best performer last year?
- Featured in a magazine?
- Outperformer over time?
stock picking
Is Investing Gambling?
People frequently say that investing in the stock market is just gambling.
– Is that true?
– Would it be good if that were true? Let’s find out.
– Is that true?
– Would it be good if that were true? Let’s find out.
What’s Wrong With Women?
Women don’t tend to invest as well as they could, getting far lower returns than the market average. How bad a problem is it? What should be done?
What’s the problem? It comes down to our confidence in one area.
The Smart Penny #1: The Gambler’s Fallacy
If you flip a coin and get heads 4 times in a row, the next flip is likely to be tails, right? That reasoning, which often makes intuitive sense to us, is dead wrong. We start from something true: coin flips tend to average out to half heads, half tails. If you jump from that to assuming that past coin flips affect future ones, you’re implicitly saying that the coin remembers and acts.