Everything's Psychology The Psychology of Investing
14 snips
Sep 16, 2025 
Join Dr. Daniel Crosby, a psychologist and behavioral finance expert, as he dives into the fascinating interplay between psychology and investing. He reveals how biases, like overconfidence and familiarity, often lead investors astray. Discover why emotional decisions can undermine even the strongest funds and how market instincts may mislead us. Crosby also offers actionable tips, emphasizing the importance of education, environment, and encouragement for investment success. Learn why women tend to outperform men in investing and how to choose the right financial advisor.
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Familiarity Creates Hidden Concentration Risk
- Conservatism and familiarity bias push investors to overweight home assets, creating hidden concentration risk.
- Feeling safe owning local companies can actually increase your overall financial risk.
Shark Week Made Him Fear The Ocean
- Daniel avoided swimming past his knees in Hawaii after watching Shark Week despite tiny actual risk.
- This shows how salience makes dramatic but improbable risks drive behaviour more than mundane dangers.
Loud Risks Distract From Real Threats
- Media-driven salience makes investors obsess over rare catastrophic events and ignore everyday financial decay.
- Over-focusing on the next crisis leads to missing steady actions like investing or raising income that build wealth.
