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Beware of Myopic Loss Aversion

Beware of Myopic Loss Aversion

I just finished “The Little Book of Behavioral Investing” by James Montier.  It is an amazing book with lots of great information.  Highly recommended!  One concept he touched on in the book is termed “Myopic Loss Aversion” which immediately caught my attention, so I want to delve into it a little in this post.   When it comes to investing, perfectly rational people sometimes make very irrational investment decisions, caused by numerous biases, but the most common of all is…

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