Avoiding Confirmation Bias

Managing your wealth involves a plethora of decisions, from choosing how much money to save to selecting an appropriate asset allocation to picking individual investments. Every one of these decisions requires your brain to gather and process large amounts of information, which means that there are plenty of ways for it to make mistakes. One of the most common mistakes is “confirmation bias,” the (very natural) tendency for people to seek out and interpret information in ways that support beliefs they already hold.

Topics: Blog Confirmation Bias