Behavioral Finance: It’s All In Your Mind

Scott Burg, CFA, CAIA
February 26, 2019

Have you ever felt like you are your own worst enemy when it comes to investing? If so, you’re not alone. In fact, it’s a foundational truth of behavioral finance, the psychological study of financial decision-making. When it comes to investing, humans routinely make mistakes due to mental shortcuts and emotional biases. To better understand the role of emotions in investing, we talked with...

Have you ever felt like you are your own worst enemy when it comes to investing? If so, you’re not alone. In fact, it’s a foundational truth of behavioral finance, the psychological study of financial decision-making. When it comes to investing, humans routinely make mistakes due to mental shortcuts and emotional biases.

To better understand the role of emotions in investing, we talked with Morgan Housel, a partner at the Collaborative Fund, former columnist at The Wall Street Journal and analyst at The Motley Fool, about the implications of behavioral finance. To see how your emotions and behavior may be affecting your investments’ performance, check out “It’s All in Your Mind: Q&A on Behavioral Finance with Morgan Housel” in the Winter 2019 issue of The Advisor.

Scott Burg is a senior investment analyst with more than 20 years of industry experience. He is responsible for investment manager due diligence and selection within the Multi-Manager Investment Program's traditional investments team.