23 Sneaky Biases That Are Ruining Your Investing Plan

[@OptimizedPortfolio]

Which of these investing biases do you catch yourself on the most?

[@cl5619]

This video is so damn good. I probably should watch it frequently to remind me of these bias traps of which I will fall into

[@OptimizedPortfolio]

Thanks! Probably a good idea. :)

[@qswedasf]

The home country bias is more complex than what you make it seem and also the research that support some home country bias. For sure not overweighting or overly concentrating, but a small modest allocation if the relative market weight is lower, is not necessarily bad at all. Recency and confirmation bias is seems to be the most popular these days with new investors.

[@OptimizedPortfolio]

My audience is mostly US investors, for whom massive home country bias is all too common.

[@mere_cat]

Damn! Masterclass in bias! Awesome long form video! 🙇🙇‍♀️🙇‍♂️

[@OptimizedPortfolio]

Thanks!

[@TJ-Stackin]

Fantastic video brother 👏 👍

[@OptimizedPortfolio]

Thank you!

[@darrellsellers]

Ok, you push this over the top: one of the best videos on KZbin covering stocks. Bravo!! 👏

[@OptimizedPortfolio]

Glad you liked it!

[@bbarre4601]

I don't know any investor who shouldn't watch this. Here's something I ponder now and then. I think you'd agree there is usually bias in stock picking. This makes me think about people who start a business. In a way, they are picking a stock: their own business. This seems ripe for biases. Perhaps this is why most startups fail. Yet it's a good thing people take on that risk, otherwise we'd have nothing to invest in :)

[@OptimizedPortfolio]

Thanks! Good point.

[@jz8756]

Just Amazing! this is helpful beyond the scope of investment.

[@OptimizedPortfolio]

Glad you think so!

[@eugene3496]

This is pure gold 🥇! Thank you!

[@OptimizedPortfolio]

Glad you liked it!

[@eugene3496]

@@OptimizedPortfolio funny enough, I was studying for a midterm exam for my psychology of financial markets course when this video played next. This video was a good summary of the chapters in the first half of the course (investor psychology and behavior).

[@OptimizedPortfolio]

Excellent!

[@mtombak]

Great video, well explained thank you.

[@OptimizedPortfolio]

Glad you enjoyed it!

[@jasonhobbs2405]

Great video. GREAT video!

[@OptimizedPortfolio]

Thank you!

[@christopherwilliams6191]

Outstanding content.

[@OptimizedPortfolio]

Thank you!

[@coinbowl]

I like Vanguard Total World Stock ETF (VT) and Vanguard Total World Bond ETF (BNDW). I wish Vanguard has more total world ETFs.

[@OptimizedPortfolio]

Those are great choices!

[@genorgeanaplaszio1246]

I couldn’t stop watching this video. So simple, direct…. But now, wtf do I do….

[@OptimizedPortfolio]

Hah, love it! I'm biased, but here are a few ideas that come to mind: 1. Like and share this video. ;) 2. Write an investment policy statement. I have a video on this linked at the end. 3. Consider buying a few low-cost, total market index funds. I have a video on the popular Bogleheads 3 Fund Portfolio linked at the end as well. 4. Sit back and relax. 😎

[@Jpsantos94]

For a simple set it and forget it portfolio for 30+ years, do you recommend just the 3 fund portfolio?

[@OptimizedPortfolio]

Depends on whether that is a suitable strategy for that investor. But yea it's a solid choice.

[@kennethmartin6349]

Why does herding not apply to things like etf investing? For example everyone on KZbin recommending vti or voo? Is it just because of the sound foundation of tracking an index in the long term?

[@mr2981]

Of course herding can apply to ETF investing, ARKK for example. But remember that herding is a problem because it involves irrationality, substituting trend following for prudence. Investing in a low cost, highly diversified ETF like VTI or VOO have over a century of evidence to back up those choices. That is not irrationality.

[@kennethmartin6349]

@@mr2981 thanks for clarifying

[@OptimizedPortfolio]

Herding can definitely apply to ETFs. Usually more with narrower sectors or market segments like VGT for US tech, ARKK, etc.

[@Brent233]

Future is uncertain but history shows value of entire stock market always goes up (over long time span).

[@OptimizedPortfolio]

I sure hope so.

[@soggycikn]

Awesome video!!!

[@OptimizedPortfolio]

Thank you!