The Biases That Cost You Money

The message this week is simple: we all carry biases without noticing, and the investor's job is to recognise them and adjust. You cannot switch a bias off, but you can build a process that accounts for it. Recency bias has you assume recent moves will continue. Availability bias has you judge the odds of something by how easily you can recall it. Anchoring fixes you on price instead of value, and on what you have won or lost rather than the odds of a reversal from here.

Those are three of the six. The others, priming, frequency and the law of large numbers, and media bias, all push in the same direction: they get emotion to crowd out the statistics. And that is exactly when investors make their most expensive mistakes …

Bias costs money. Process saves it. Premium members get the full framework, the charts and the calls, every week.

This week Steve, Tom and Jacob dig into where real value sits when the headline index looks stretched but the average stock does not. The psychology, the valuation picture, and what it means for positioning right now. Free listeners get the full episode.

The biases above are easier to catch once you know your own wiring. Our free investor personality assessment, built on the Enneagram framework, takes ten minutes and shows you your archetype, your strengths, and the blind spots that cost you money.