Australia's largest stock trading and investment forum Australia's #1 stock forum

SP500

Click for more information

0.58%

2,958.8 standard & poor's 500

It's not what you don't know that gets you into trouble.It's...

First 14258 Last

Share
Profile

Follow
Tarvold

23,130 Posts.

1261

16/02/24

20:16

Post #: 72452675
Share

Originally posted by COVID19: ↑

Vicious Traps
by Morgan Housel

Patience and Confidence. They both sound great. But mixed together they often form stubbornness, which is a disaster. Confidence that you’re right gives you permission to ignore signs that you’re wrong, and Patience gives you permission to extend that denial indefinitely.

Charlie Munger once said:

Failure to handle Psychological Denial is a common way for people to go broke. You’ve made an enormous commitment to something. You’ve poured effort and money in. And the more you put in, the more that the whole consistency principle makes you think, “Now it has to work. If I put in just a little more, then it’ll all work.”

People go broke that way, because they can’t stop, rethink, and say, “I can afford to write this one off and live to fight again. I don’t have to pursue this thing as an obsession in a way that will break me.”In general: People who are panicking know they’re panicking. People who are being dishonest know they’re being dishonest. But those in a Patience-Confidence Trap have no idea, because both traits on their own seem so positive.

Expand

It's not what you don't know that gets you into trouble.
It's what you are certain is true, that isn't.

Value at posting: 2,958.8
Upvote

0 Great analysis

Reply

Top Stories

What each US election outcome would mean for Australian companies & investors

Week 44 Wrap: Relatively boring week ahead of US election; HotCopper's most watched; Oz inflation at 3.5%

Palladium's the newest geopolitical hot commodity. But ASX exposure is limited

MKT

The ASX can overlook its Telecomm small-caps. Here’s one diversified brand with an international footprint

Bitcoin hits fresh record as instos pile into BTC ETFs – and Trump helps, too

Aussie inflation seemingly hit a 3 year low. So why's the ASX200 red?

'We're looking': Nickel-rich Indonesia sounds graphite warning to Aus producers

MIN

Movers and Shakers: Zip Co, MinRes, Kuniko, more – The week's top ASX gainers

Making money: How many microcaps should be in an investor's portfolio?

The Altcoin Landscape (Part 1): Key alternative cryptocurrencies to watch

There are more pages in this discussion • 234 more messages in this thread...

First 14258 Last

Add SP500 (INDEXSP) to my watchlist