Investing Biases and overcoming them

I studied this years ago in developmental psychology. Basically, people have different modes. One is where you can accept new information and modify your viewpoint based on the new information.

For example, I always thought I would retire on property alone, but as I am becoming more educated and experienced, I see the cost of running residential properties is very high compared to the income... 30% to 40% of the income goes in costs in some cases. There are also other hassles such as tenants and repairs. I have used the information to modify my view.

There is point where some people get stuck and can't modify their view even when compelling new evidence is presented. I can't remember what the stages are called but it was really interesting. I have seen people who get stuck. It's not good.

We need to be able to adapt our investing to changing economic realities. Those who adapt will thrive.

 

Me too. I has done an analysis at work yesterday afternoon and when I got into work the next morning I saw an email from my colleague who had made two great suggestions to me for that analysis. I acknowledged them as great ideas so I endeavored to redo the work (it really wasn't that big an effort as all the pieces were already there). I sent the work back with her suggestions. We then had a discussion over lync/skype.

During our conversation, she said to me she was appreciative that I included her ideas, she said a lot of people aren't open minded and would take it completely the wrong way.
She said a lot of people won't accept a suggestion that would make the work better and would ignore/reject her feedback. Perhaps too proud to acknowledge that they could do better.

For me, it all makes the work coming from our team better for the customer, and also I can improve on my work and take that feedback on for the next time this sort of exercise is required.

I know she does quality work, she drives results. She is able to go to a level in an analysis that a lot of other people wouldn't. Of course I'll consider her comments. Always be willing to learn and grow.