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 8Warren BuffettBeware of Overconfidence

It ain't what you don't know that gets you into trouble. It's what you know for sure that just ain't so.

—Mark Twain

One day in early 2017, $105 billion worth of S&P 500 stocks were traded. Every person that sold and every algorithm that bought thought they were on the right side of the trade. It's true, investors are a confident bunch.

When it comes to the future, which is by definition unpredictable, we tend to believe we know more than we actually can. One of the ways that this manifests itself in investing is in something called the endowment effect. After consumers or investors make a purchase, we value this new possession more than we did before it was ours.

Imagine you're wagering on ...

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