If I had to write one sentence that is true always and everywhere, it would be this: Smart investors did stupid things again today.
A new book, Big Mistakes: The Best Investors and Their Worst Investments, by Michael Batnick, director of research at Ritholtz Wealth Management in New York, is the latest proof of that. It’s also a reminder that making mistakes with your money is normal, human and hard to avoid.
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This article was originally published on The Wall Street Journal.
Further reading
Michael Batnick, Big Mistakes: The Best Investors and Their Worst Investments
Gary Belsky and Thomas Gilovich, Why Smart People Make Big Money Mistakes
Benjamin Graham, The Intelligent Investor
Kathryn Schulz, Being Wrong: Adventures in the Margin of Error
Jason Zweig, The Devil’s Financial Dictionary
Roger Lowenstein, When Genius Failed: The Rise and Fall of Long-Term Capital Management
Jason Zweig, The Little Book of Safe Money
Robert MacCoun and Saul Perlmutter, “Blind Analysis: Hide Results to Seek the Truth,” Nature, Oct. 7, 2015
Emily Pronin, “Perception and Misperception of Bias in Human Judgment,” Trends in Cognitive Sciences, 2007