how overconfidence and confirmation bias create reinforcing loops
The most prominent decision biases in investing
Below is an excerpt from the presentation I did at McCombs Business School at UT Austin.
It’s more hands-on to watch it after you take this quiz:
(Respondents tend to score about 4 out of 10 on it.)
There’s a fun experiment in the video as well.
You’ll see just overconfidence and confirmation bias feed off each other in an escalating, reinforcing loop — and the key to stopping it.