Which bias do you relate to the most?

@ScipioAfricanus809

3 жыл бұрын

“The investor's chief problem, and even his worst enemy, is likely to be himself” Benjamin Graham.

@JamesShack

3 жыл бұрын

@@ScipioAfricanus809 the technical knowledge required to invest is very basic. But investing is actually very hard, because of this 👆🏻.

@seraho

3 жыл бұрын

Risk aversion. I'm a coward and the fear of losing my money was kept me away from investing for the longest time. Even when interest rates fell below 1%, I still opted to keep saving because at least there was no risk of losing my money in a savings account and then I learnt about inflation. 🙃

@garethgazz9332

3 жыл бұрын

I'm too optimistic and believe in a companies story quite easily when it is covered in some article or whatever. Is there a bias for that? I have to have a rule where I don't buy anything unless I have sat on it for a day or two first. Great vid by the way!

@jamesc328

3 жыл бұрын

I was very risk averse up to March 2021, then during lockdown started watching and learning about Index funds. It is scary, that I had so much ready cash roughly 50% cash 50 % in HL ISA and Sipp. Everything is with Vanguard now. I have increased my portfolio by 41% (8% is growth), the rest from cash invested. Currently got plenty of years cash for backup if anything goes wrong, so in August I have 30k maturing out of a Fixed Rate Account, so will be looking to invest that. I already have a lot in the S&P 500, some in ESG and might look at the U.S. Equity Index Fund - Accumulation for the 30k. I eventually want to get myself down to 2 years worth of ready cash, which I know is still probably too much. Also always watch your videos to the end, keep up the great work

" If you can't control your emotions, you can't control your money" - Warren Buffet

I love this! I used to sit through movies I wasn't enjoying just to get my money's worth or eat a meal I wasn't enjoying for the same reason. It's ridiculous. You're right, we need to think more clinically and cut our loses.

Yes - watched to the end. Always enjoy your videos.

@JamesShack

3 жыл бұрын

🙌🏻

James - Yes I always watch these videos to the end... I find them really informative.

@JamesShack

3 жыл бұрын

🙌🏻

👍 love your content James. It's so great to have a professional, calm opinion through all the noise around finance. Keep it up!

@JamesShack

3 жыл бұрын

Cheers Charlie!

👍 big thumbs up...didn't want it to end. Great to see a good uk investment channel. Keep up the good work...feel like I need to see a financial planner now lol

Nice one James - subbed and watched to the end.

@JamesShack

3 жыл бұрын

🙌🏻

👍I listen to the end because what you say is informative, interesting and fun too.

@JamesShack

3 жыл бұрын

🙌🏻

Hi James thank you so much for putting the time and effort into these lectures, the information, insight and perspective are fantastic, it makes me wish I’d learnt more about financial education when I was younger, and the missed opportunities I could have benefited from with some simple guidance early on in my financial career.

@JamesShack

3 жыл бұрын

Hey no problem! Just make sure to share!

@jam99

2 жыл бұрын

Great stuff, James, thank you. The probability questions were unfair though. Probability only works statistically if the same bet is taken multiple times. You did not ask the question that way. You implied the listener was just making this bet once ("Which would you rather"), not multiple times. Obviously someone will only choose the chance not to lose rather than the sure lose if someone only has one stab at it. Just like most people would choose the sure win of a slightly lower amount than the gamble of a slightly higher amount, IF they only get one chance. The statistical analysis is only valid when the dice is rolled multiple times. Most of your stuff makes sense but this was utterly invalid because of the trick you played in the wording of the test questions. (I would give you a thumbs up but emoticons are a pain in the arse on this system.)

👍🏽 always watching to the end. Very informative as always James

@JamesShack

3 жыл бұрын

🙌🏻

Another great episode from James, and of course, I watched until the end 👍

Im a big fan James...........great stuff buddy

@JamesShack

3 жыл бұрын

Cheers Will , thanks for the support!

👍 informative as ever James, always look forward to your videos.

@JamesShack

3 жыл бұрын

🙌🏻

👍🏻 The discussion about aversion to risk of losing money reminded me of the story recently where a US men’s football team took a risky contract but the women’s team negotiated for a less risky contract.

Thanks for your good advice. We all need to hear this line of thinking over and over.

👍🏻 great content! By the way, regarding your bets examples, I think more time should have been placed on the statistical analysis. Some of these bets make lots of sense on a repeated instance, but become risky if you know the occurance of it is limited to once. For instance, a 50/50 probability of either losing 1000 or winning 5000 is a good or bad bet depending on (1) how much 1000 is of your total assets and (2) how many times your repeating the bet. If 1000 is, say, 80% of your assets and you do the bet only ONCE, the value of those 1000 far exceeds the potential benefit, because 50% of the time you will become broke. Now of you know its a bet you can repeat, say 10 times, it becomes a no-brainer because the bet is free money at this point. Therefore the probability calculations are important for the decisionmaking.

@JamesShack

3 жыл бұрын

Thanks for the feedback Tommy, yes I’ve heard that from others . it seems I didn’t quite frame is all correctly.The reference point of how much money you have certainly affects decision making.

A good investor is a person who continues to regularly invest and invests in the long term . If you genuinely believe that a stock is under valued then it is always a good idea to invest in it, especially when there is a downturn in the markets. The more you buy and sell, the greater the risk of under performing but the more you buy and hold, the greater the chance of at least matching the markets the longer you hold on to the stocks. Patience is a virtue

👍👍👍👍👍...! Watched it all. 10/10 as always, James.

Always watching til the end, so informative! 👍👍👍

@JamesShack

3 жыл бұрын

🙌🏻

And again, you've smashed it out the park. Quality is definitely greater than quantity. I watched to the end as always. Found this really informative and really just corroborates the fact that direct debits or standing orders into investment funds are the best option. I think the riskiest part (for me atleast) is when it comes to the annual or semi annual re-balancing. Could we get a video on that?

@JamesShack

3 жыл бұрын

Haha! Thank you. Yes i've started to realise that it's worth slowing down and even doing 2 vids a month just so you can put more thought into the ideas! Yep, I'm gonna do one on that very soon. Some title like "Why you should sell your winners and buy your losers"

👍I watch everyone of your videos from start to finish. Very informative and thought provoking. It would be great to have a video on more exact details about the processes you mention to avoid our cognitive bad behaviours.

@JamesShack

3 жыл бұрын

Hey Raj, thanks for the continued support! I'll get round to that for sure!

Hi James! I watched till the end. I know what you did there. 😉 That's another subtle "lesson" I just learned. Thank you.

Another great 'hit the nail on the head' video. Thank you!

These are actually good life lessons, not just with investing. One of the better videos out there. I like how you got my attention with the click bait offensive title :)

@JamesShack

3 жыл бұрын

Haha glad it worked!

@NoName-ql1wk

2 жыл бұрын

Agree. The videos are simple enough for the average Joe to understand and really should be taught in school mandatorily. Excellent channel. Wish I discovered it at 26 not 36 but nevermind. I at least now have money to invest.

I watched to the end. I found behavior to be more important than the actual mutual fund or ETF I own. 2020 was a great example.

@JamesShack

3 жыл бұрын

Yes indeed. Unfortunately this can only be learned through experience, it can’t be taught!

@johnanth

3 жыл бұрын

While I agree with what you say, I wouldn't be so harsh on people that took out their savings when everything crashed in March. Not everyone was fortunate to be employed, lots of relationships were tested, and for corporations, no one knew quite what they were in for. But yes, it's better to hold the course than take a loss.

To the end. Your video length is spot on and engaging throughout.

@JamesShack

3 жыл бұрын

Cheers Lee! Much appreciated!

👍🏽 Useful content, with great visual representation as always. Keep it up

it was offensive to me until you clarified that youre better with my money vs myself. im a god trader and investor and next meme follower

@JamesShack

3 жыл бұрын

Haha, so I’m guessing you relate most closely to Overconfidence bias ?!

@FoxtrotWTA

3 жыл бұрын

Everyone’s thinks they’re a genius in a bull market 🙂

👍🏻 Great content again James - it’d be interesting to see how people’s risk aversion changes when the potential loss increases. I imagine many more people would happily risk losing $100 from a coin toss for the chance to win $150, compared with those who would accept the risk of losing $10,000 against winning $10,050 even though the expected return would be the same. And if you could toss the coin infinite times of course you’d be crazy not to accept the bet.

@JamesShack

3 жыл бұрын

Hey! So typically it falls off between 1.5-2 times the loss. So $100 loss for $150 gain up to $100 for $200 gain. After 2x it really drops off. This is a test of people's attitude to risk. You should check our Daniel Khaneman's book Thinking Fast and Slow. It goes way deeper than what i've done here and across even more biases

Great video James - i rewatch it often 👍

Great video, I watched to the end. I like they way you explained it.

👍 At the moment the thing I'm mostly affected by is Confirmation bias. I came here following one of your links that I thought would take me to a video on Factor investing. I'm glad I stuck around to the end of this video though.

I feel like you’re speaking directly to me thank you very much for your education!

@JamesShack

3 жыл бұрын

🙌

Yet again another great video. Food for thought!!

👍just found your channel, James, and the content is superb. Thank you for generously sharing your professional insight.

Watched to the end! Great video :-)

@JamesShack

3 жыл бұрын

🙌🏻

Watched it till the end. Great video as usual.

@JamesShack

3 жыл бұрын

🙌🏻

Hi James....Your contents are fantastic. I feel myself lucky to subscribe to your channel....

@JamesShack

3 жыл бұрын

You’re welcome !

Another great video, James - dealing with an aspect of investing that isn't covered as much as it should be. Love the provocative title and yes, I watched all the way through to the end - it would be rude not to 🙂

👍 great content very well delivered, thanks James.

Really enjoyed listening to how we can be our own worst enemy and these cognitive biases apply to so much that we choose to watch online. Thanks James 👍🏽

@JamesShack

3 жыл бұрын

🙌

I love your videos James. Thank you 😍

@JamesShack

3 жыл бұрын

🙌

Excelent video. Really makes you think👍

Thanks James!

@JamesShack

3 жыл бұрын

🙌

👍 Thank you for your videos!

👍 Love the clarity with which you explain things

@JamesShack

2 жыл бұрын

Thank you for saying so!

Confronting. Good stuff. I now find out you studied Psychology. Very usefull. That´s why you are able to explain the behavioural side so well. Love the content

👍 Great stuff. Thank you.

👍 Hi James. Thank you for the content and taking the time to make your videos. I learn something new with every one I've watched so far.

Great video again James, loving the content! Not gonna lie, whenever I watch your videos I get a bit distracted by the background, your house looks gorgeous! Made it to the end but I can't find a thumbs-up emoji :)

@JamesShack

3 жыл бұрын

Haha thank you! And thank you for the support!

Thanks James another great video

Another excellent video...eye opener!

👍 love it, the argument of EV is also so relevant also in matched betting where people go through the same emotions as financial investing.

@JamesShack

3 жыл бұрын

Yes indeed!

👍another great lesson- thanks James!

Really good and intriguing stuff. thumbs up!

I did!!!! And I agree with everything you have said!!!

Great video…. I had never heard of anchoring, now I can totally see clearly what it is. I was looking at a DFS sofa…..anchoring right there!!!!

👍 I enjoyed this video more than you did! 😀

👍Nice take on the realities of investing for general folk. Good delivery James.. Kept my interest!

@JamesShack

3 жыл бұрын

🙌

👍 Nice one James - as usual, really interesting and well delivered.

@JamesShack

2 жыл бұрын

Glad you enjoyed it

Always watching to the end … most enlightening for us amateurs …good job …

@JamesShack

3 жыл бұрын

Thanks George!

Your content is excellent!

👍👍Another way to get out of the "dont sell at a loss" mode is to view each stock/fund like a traffic jam. All the other lanes are moving faster than yours, so just switch lanes. Then switch again when the current lane stalls (obviously not immediately for investing, Id give it a few months). If you jump back to your original stock/fund in a few months time, wont you be ahead compared to not changing lanes? 👍👍

👍🏻 interesting and some good points to consider in a number of areas, not just investment.

👍Love your content James. Comprehensive, summarising the academic aspects really well, as much as needed to support a practical approach to investing. My favourite financial commentator with a middle approach between Ben Felix and someone like Rob Berger.

@JamesShack

Жыл бұрын

Thank you, very kind words!

👍 Great stuff, thanks for posting!

👍- Another great video. Thanks James

Mind Blown! Thumbs up! Wink!

@JamesShack

3 жыл бұрын

🙌

👍just subscribed, going through all your videos, bit by bit. Thanks for your passion!

@JamesShack

2 жыл бұрын

Welcome!

Very interesting topic and why I take a hands off approach to investing. I watched to the end 👍

@JamesShack

3 жыл бұрын

🙌

👍 Thank you for another great video, James. You have one of the most engaging and informative channels on KZread. Always watching til the end.

@JamesShack

3 жыл бұрын

🙌

👍 Great video James!

Great video. I always watch my favourite channels to the end cause runtime and engagement is important to channel success. 👌👍

@JamesShack

3 жыл бұрын

Ah cheers mate! I didn't realise people did that!

👍 Thanks for the lesson

Thumbs up, watched to the end.

Brilliant, I really love the psychological aspect of investing..plz make more of these..keep up the good work

@JamesShack

3 жыл бұрын

I will try!

Great video, I read Daniel Kahneman Thinking Fast and Slow; and Nassim Nicholas Taleb Black Swan etc...your ideas fit perfectly with their observations.

👍 new subscriber. Love the content. Just starting my journey so all of this helps a lot.

I could have listened for another hour- so many truths, we all fall into the traps but great when someone takes the time to tell you where they are 👍

Interesting video, I enjoyed and agreed with your insights- I watched to the end, I always do with your videos James 😊

@JamesShack

3 жыл бұрын

🙌

👍🏽 another great video. Always watch to the end

@JamesShack

3 жыл бұрын

🙌

👍🏼 Thanks for your excellent explanations.

@JamesShack

Жыл бұрын

My pleasure!

Watched to the end! 👍

Another good video. Thanks for the informative and detailed videos that you produce. 👍

@JamesShack

3 жыл бұрын

Cheers Mark!

Great video!thanks for the quality content. 👏👏👏

@JamesShack

Жыл бұрын

Glad you enjoy it!

👍 60 years old UK guy just retired from teaching and doing part time work to avoid taking too much of my pension pot. I watch a lot of your videos James. Very interesting

To the end - great video. Really good fun.

@JamesShack

2 жыл бұрын

Glad you liked it!

Great video! Whew! You almost TIED ME! 😂

@JamesShack

3 жыл бұрын

🙌🏻

Old but...👍 appreciating the content

👍 thanks James!

Legend buddy love your honesty and insight cheers gazza australia

this is the video i needed subbed.

👍🏻always watch to the end, great content as usual 😀

@JamesShack

3 жыл бұрын

Cheers Ashley!

Watched all your videos and this one is by far the best. Fascinating! I’ve always managed my own investments but since watching your videos I now invest 70% in vanguard 100 life strategy and 30% in crypto. I struggle with my emotions when it comes to my money so the life strategy fund just takes that away

@JamesShack

3 жыл бұрын

Interesting! Yes, I think everyone starts of really interested, and we all have a lot of overconfidence, but gradually we start to lose interest and realise that there's a lot we don't know... so but to just stuff it in an index fund.

👍 really good video. I really enjoy your style and the way you present the concepts. Thanks for sharing.

👍Great Video! (thumbsup as requested at the end of the video! 🙃)

I watched to the end James!

@JamesShack

3 жыл бұрын

🙌🏻

Always watch to the end. Your investing/pension planning ideas have helped me revalue my investment and retirement plans. The hardest part is always finding the best way to stress test my plan

@JamesShack

Жыл бұрын

Great stuff. What are the levers that you think make the plan vulnerable, are you aiming for a high withdrawal rate?

@lawrencesinderson

Жыл бұрын

@@JamesShack I started late in life (52) and comfortable taking high levels of risk. I think its realistic that I will retire mid 60s with a very comfortable investment pot. The main threats to the pot is (1) not investing enough over a relatively short period of time (10-15 years) and (2) choosing the wrong year to invest in. I am fortunate that the job I do is working from home and its common for workers to stay with the company even in retirement. So my strengths are that my retirement date is flexible and I have a safety net should I need to delay it by 1-5 years. My other other lever to failure is my mortgage, again, started late and its due to end when I am 74. I am unsure of the direction I want to take with this as yet.

@JamesShack

Жыл бұрын

Things to focus on would be, like you said, longevity in your job but also in your health. Starting later is fine, you can always push things back - so long as you stay healthy for longer! You can get Lifetime mortgages these days if over 55 which can help solve that problem. No one know what the markets will do in the future, so now is as good as any time to invest. It's only in hindsight that we can look back and say that was "good" or "bad" but it wasn't really - just luck! That uncertainty is hard to accept but that's the truth of it. If you're still 10+ years off retirement, that's still plenty of time to see growth.

Fantastic video, James. I love how creators like you educate us chimps. 👍

@JamesShack

3 жыл бұрын

Anytime!