Our friend Mr. Herman
Brodie owner of cognitrend Gmbh,
Prospecta Ltd explains its better.. thought of sharing with all of us.
Sure...cognitive
dissonance. Leon Festinger had the answer to that in the 1950s
On the contrary, cognitive
dissonance explains why investors cherry-pick information to justify decisions
they have already made. It explains why the "Wall of Worry" exists.
It even provides an explanation for the disposition effect.
My experience with investment teams is that as soon as they learn about how cognitive dissonance manifests itself in decision-making and how to recognize it, the subsequent group discussions change. Decision makers become more critical and more willing to challenge one another. If I had 30 minutes to teach an investment team just one behavioural topic, it would be about cognitive dissonance.
My experience with investment teams is that as soon as they learn about how cognitive dissonance manifests itself in decision-making and how to recognize it, the subsequent group discussions change. Decision makers become more critical and more willing to challenge one another. If I had 30 minutes to teach an investment team just one behavioural topic, it would be about cognitive dissonance.
Your opinion on same if
any is welcome…
No comments:
Post a Comment