Ken Fisher: The only three questions that count. Favorite quotes.

The book itself I would not recognize as genious, but I did like following ideas:

Investors  hate losses about 2,5 times as much as they like gains. A 25% gain feels as good a 10% loss. Said otherwise, if you gain 10% over here and lose 10% over there, you feel like you are behind. This is commonly known as loss aversion, intimating shortsightedness and overactive reaction to short-term movements. At root, myopic loss loss aversion and the mistakes it leads to are about two things – pride and regret.

Traditional finance notions derive from traditional notions of economics – that humans in aggregate act rationally, markets are efficient or at least semi-efficient, and individuals acting irrationally may be ignored. By contrast, behavioral finance assumes quirky behavior . Irrationality is assumed to be potential behavior. It’s true – our modernized skulls contain Stone age brains. Investors aren’t rational automatons; they are humans and regularly behave in crazy ways when making financial decisions.

You are a unique, wonderful person. I have no doubt; however you’re probably unique just about like everyone else. You’re not statistically unique. In a statistical sense being unique is to be way, way out the end of the bell curve on some set of attributes. If you’re really unique , you’re technically quite weird. Unique means weird. Most folks like to think of themselves as unique. They don’t like to see themselves as weirdos.  You probably

Comments

[Tameka31Griffith]

It is well known that money can make us disembarrass. But how to act when somebody has no money? The only one way is to receive the loans or short term loan.

[afrey]

Hi – I work for Fisher Investments and our CEO, Ken Fisher, just released a new book on investing and stock market myths and misconceptions called “Debunkery: Learn It, Do It, and Profit From It”. Check out the following links to learn more about Ken Fisher and Debunkery:
Ken Fisher’s Debunkery website: http://www.ken-fisher-debunkery.com
Ken Fisher Debunkery Facebook page: http://www.facebook.com/pages/Ken-Fishers-Debunkery/159215550768209

[Fisher Outreach]

Great quotes from the book. I'm with Fisher Investments, and you can learn more about Ken and his bestseller The Only Three Questions That Count at the book's official website.