Scrooge Strategy

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Investor psychology

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14

How to plan for disasters and personal finance — with social psychology

There’s a great article in last weekend’s New York Times Magazine on disaster preparedness, which I want to use to highlight the social-psychological reasons for why we behave the way we do.

Photo from e-strategyblog.com
Read the article closely and notice the parallels between preparing for a disaster and preparing for your financial future. They are eerily [...]

34

A fantastic book on behavioral psychology: Sway ($1,000 giveaway)

Note: There is a $1,000 giveaway at the bottom of this post.
Do you think you could tell the difference between a Coke and Pepsi?
Of course you do.
When I was an RA in college, my residents insisted they could, so I bought Cokes, Diet Cokes, Pepsis, Diet Pepsis, and a generic soda to test them. [...]

46

Why my friend invests in an insanely expensive fund and why I don’t

I was working on my asset allocation this weekend — something I haven’t written about in detail yet — and had something interesting happen.

One of my friends works in finance and was hanging out with me. He told me that I should look at look at one of his company’s funds, which was doing [...]

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