You can let your nonsense detector down around nurses, pilots, and bus drivers, because their personal incentive to deceive is near zero. But incentives can be so staggeringly high in finance that otherwise good, honest people become willing to spout nonsense and market wild ideas. This in less about poor morals and more about the power of beliefs to be shaped by paychecks and social status.
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- [note::Reminds me of: "If you want to see where people stand, look at where they sit."]

Enjoyment bias: An inefficient investing strategy that you enjoy will outperform an efficient one that feels like work because anything that feels like work will eventually be abandoned.
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Reasonable ignorance – intentionally limiting your diligence in order to avoid decision paralysis in a world where everything, if you dig deep enough, is more complicated than it seems.
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Recent performance is more likely to be an accurate guide to future performance, because it is more likely to have arisen out of causal conditions that are still there in the system, as opposed to conditions that have since fallen away.
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- [note::But when those conditions have changed (and the system has jumped to a new regime), one must be weary of using historical data to make projections.]

You can let your nonsense detector down around nurses, pilots, and bus drivers, because their personal incentive to deceive is near zero. But incentives can be so staggeringly high in finance that otherwise good, honest people become willing to spout nonsense and market wild ideas. This in less about poor morals and more about the power of beliefs to be shaped by paychecks and social status.
- View Highlight
-
- [note::Reminds me of: "If you want to see where people stand, look at where they sit."]

Enjoyment bias: An inefficient investing strategy that you enjoy will outperform an efficient one that feels like work because anything that feels like work will eventually be abandoned.
- View Highlight
-

Reasonable ignorance – intentionally limiting your diligence in order to avoid decision paralysis in a world where everything, if you dig deep enough, is more complicated than it seems.
- View Highlight
-

Recent performance is more likely to be an accurate guide to future performance, because it is more likely to have arisen out of causal conditions that are still there in the system, as opposed to conditions that have since fallen away.
- View Highlight
-
- [note::But when those conditions have changed (and the system has jumped to a new regime), one must be weary of using historical data to make projections.]