Skip to Main Content
Big Mistakes
book

Big Mistakes

by Michael Batnick
June 2018
Beginner content levelBeginner
192 pages
4h 4m
English
Bloomberg Press
Content preview from Big Mistakes

CHAPTER 7Jerry TsaiYou're Not as Smart as You Think

Genius is a rising market.

—John Kenneth Galbraith

Stocks go up most of the time. At least they have historically in the United States. Since 1900, the Dow Jones Industrial Average has experienced double‐digit gains in 47% of all years. With the wind often at our back, it's the natural tendency of investors to attribute their gains to skill rather than to favorable market conditions.

Humphrey B. Neill, author of The Art of Contrary Thinking, said it best: “Don't confuse brains with a bull market.” The idea that we confuse our ability to select above‐average stocks in a market that lifts all boats is so pervasive that there's a name for it, attribution bias. “Attribution bias refers to the ...

Become an O’Reilly member and get unlimited access to this title plus top books and audiobooks from O’Reilly and nearly 200 top publishers, thousands of courses curated by job role, 150+ live events each month,
and much more.
Start your free trial

You might also like

How to Help High Achievers Overcome Imposter Syndrome

How to Help High Achievers Overcome Imposter Syndrome

Morela Hernandez, Christina Lacerenza
Become a Better Problem Solver by Telling Better Stories

Become a Better Problem Solver by Telling Better Stories

Arnaud Chevallier, Albrecht Enders, Jean-Louis Barsoux
How to Overcome a Power Deficit

How to Overcome a Power Deficit

Cyril Bouquet, Jean-Louis Barsoux

Publisher Resources

ISBN: 9781119366553Purchase book