Kahneman On Market Psychology And The Illusion Of Predictability
The late psychologist Daniel Kahneman had an important message for investors, analysts, and economists: Be careful when you treat the market as if it were a person.
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The late psychologist Daniel Kahneman had an important message for investors, analysts, and economists: Be careful when you treat the market as if it were a person.
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Not long ago, while digging through a box of old papers, I came across a stack of articles written by my former business partner Ken Petersen. One of his articles outlined “12 Rules for Financial Security.” Reading through them, I was impressed by his sage counsel. Ken retired a few years ago, but his rules are timeless. Here are Ken’s 12 rules, rechristened for this week’s column as “12 Timeless Tips.”
Thinking, Fast and Slow is written by Nobel award winner Daniel Kahneman. The book distinguishes between two modes of thought. The first is fast and instinctive and the second is slow and logical.