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In this episode we will discuss one of the most common cognitive errors in investing: confirmation bias. Confirmation bias is when we tend to find, retain, and promote data that is in alignment with a particular viewpoint or thesis. We'll discuss this in detail and discuss how confirmation bias can lead to poor investment decisions and how to avoid these errors.
By Philip Mock, CFA®, CFP®In this episode we will discuss one of the most common cognitive errors in investing: confirmation bias. Confirmation bias is when we tend to find, retain, and promote data that is in alignment with a particular viewpoint or thesis. We'll discuss this in detail and discuss how confirmation bias can lead to poor investment decisions and how to avoid these errors.