Satisficing is simply an approach that means we take the best answer we can come up with, given the range of information we have available to us.
Bizarrely the satisficing theories suggests that while a certain amount of information about a certain topic will lead us to improved solutions, beyond this point our decision making accuracy goes down!
If true, it again means there’s a limit to the effectiveness of stock analysis – although that’s still no excuse for simply sticking pins into the price pages of the Financial Times.
http://monevator.com/2010/07/27/behavioural-finance/
Keep INVESTING Simple and Safe (KISS) ****Investment Philosophy, Strategy and various Valuation Methods**** The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
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