15How Investors Delude Themselves


Investors are alarmingly prone to self-delusion, and most investment advisors and managers are only too happy to take advantage of that fact. It might just be part of our makeup.

In the near future, brain researchers will discover that the urge to get rich quickly originates in the same region of the cerebral cortex as the urge to have an orgasm. The same behavior patterns accompany both, the same attitudinal changes: a tendency to have less concern with speaking the truth; a tendency to overlook or forgive others’ disregard for the truth; a marked increase in the level of gullibility; a decrease in the capacity ...

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