Mental Models discussed in this podcast:

• Opportunity cost
• Loss Aversion
• Diversification vs Concentration
• Price Anchoring
• Zero-Based Budgeting
• Commitment Bias
• Game Theory:  Minimax Theorem

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You can find out more information by listening to episode 11 of this podcast.

Show Outline

The full show notes for this episode are available at https://www.diyinvesting.org/Episode51

My portfolio Current/Future State

• Owned 11 stocks 
  • 5 winners
  • 5 losers
  • 1 borderline loser
• The goal is to reduce to 5 positions
• Sold 4 stocks so far (made money on 2, lost money on 2)
• Not all "losers" lost money. Some made money.
• It's all about future return potential from here

Summary:

It's all about opportunity cost. Use rational analysis to overcome your behavioral biases.