Sign up to save your podcasts
Or
Share Net Worth & Mental Ills: The Ghost of Lucent Past
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Net Worth & Mental Ills: The Ghost of Lucent Past
- (00:00) - Show Intro
In this episode of The Penny & The Pint, the "Old Irish Guys", John and Brendan, crack open a fresh can of podcast oil at their Wheeling Street studio to tackle three powerful cognitive biases that can sneak up and paralyze even the smartest investors: Loss Aversion, Anchoring, and the Endowment Effect.
Using a classic American cautionary tale they call The Ghost of Lucent Past, the guys trace the true story of their own grandfathers. As 40-year AT&T veterans, Grandpappy Shea and Grandpappy O'Brien watched a 1996 "found money" stock spinoff skyrocket into a small fortune of nearly $34,000 during the dot-com boom. But instead of taking gains off the board, emotional attachment and a refusal to lock in paper losses caused that fortune to melt down to just $224. John and Brendan break down how to recognize these mental traps before emotional paralysis sets in on your own portfolio.
In this episode, we cover:
- Back to the Podcast Oil: Why the guys decided to leave the "straight" style behind and return to what works best when tracking bubbles and market behaviors.
- The Uncut BLT Mystery: Brendan’s ongoing battle with a local South Baltimore establishment that refuses to slice his sandwich on a bias, driving him to caveman extremes.
- Loss Aversion: Understanding why the biological pain of losing a dollar is twice as powerful as the joy of gaining one, and how it keeps investors riding assets all the way to the bottom.
- Anchoring Bias: The dangerous habit of relying on a past "high watermark" price to determine an investment's current worth, ignoring changing fundamentals.
- The Endowment Effect: Falling in love with an investment or stock simply because you own it, you researched it, or it was passed down as a family gift.
- The Nokia Remnant: A look at what that historic dot-com investment would be worth today, and a call out to see if any listeners are still carrying an old Nokia phone.
- Hunting with a Shotgun vs. a Rifle: Why trying to pin all your hopes on individual "darlings" falls short compared to a diversified approach like the S&P 500.
Contact & Resources
- Visit us online: oldirishguysfinancial.com
- Email your questions (and sandwich takes): [email protected]
- Follow the Series: thepennythepint.transistor.fm
Don't let your financial plan get buried by emotional paralysis or old family certificates. Settle the bias, diversify the stack, and remember...don't text us your sandwich takes while driving! See you at the pub!
View all episodes
By Old Irish Guys Financial- (00:00) - Show Intro
In this episode of The Penny & The Pint, the "Old Irish Guys", John and Brendan, crack open a fresh can of podcast oil at their Wheeling Street studio to tackle three powerful cognitive biases that can sneak up and paralyze even the smartest investors: Loss Aversion, Anchoring, and the Endowment Effect.
Using a classic American cautionary tale they call The Ghost of Lucent Past, the guys trace the true story of their own grandfathers. As 40-year AT&T veterans, Grandpappy Shea and Grandpappy O'Brien watched a 1996 "found money" stock spinoff skyrocket into a small fortune of nearly $34,000 during the dot-com boom. But instead of taking gains off the board, emotional attachment and a refusal to lock in paper losses caused that fortune to melt down to just $224. John and Brendan break down how to recognize these mental traps before emotional paralysis sets in on your own portfolio.
In this episode, we cover:
- Back to the Podcast Oil: Why the guys decided to leave the "straight" style behind and return to what works best when tracking bubbles and market behaviors.
- The Uncut BLT Mystery: Brendan’s ongoing battle with a local South Baltimore establishment that refuses to slice his sandwich on a bias, driving him to caveman extremes.
- Loss Aversion: Understanding why the biological pain of losing a dollar is twice as powerful as the joy of gaining one, and how it keeps investors riding assets all the way to the bottom.
- Anchoring Bias: The dangerous habit of relying on a past "high watermark" price to determine an investment's current worth, ignoring changing fundamentals.
- The Endowment Effect: Falling in love with an investment or stock simply because you own it, you researched it, or it was passed down as a family gift.
- The Nokia Remnant: A look at what that historic dot-com investment would be worth today, and a call out to see if any listeners are still carrying an old Nokia phone.
- Hunting with a Shotgun vs. a Rifle: Why trying to pin all your hopes on individual "darlings" falls short compared to a diversified approach like the S&P 500.
Contact & Resources
- Visit us online: oldirishguysfinancial.com
- Email your questions (and sandwich takes): [email protected]
- Follow the Series: thepennythepint.transistor.fm
Don't let your financial plan get buried by emotional paralysis or old family certificates. Settle the bias, diversify the stack, and remember...don't text us your sandwich takes while driving! See you at the pub!