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Net Worth & Mental Ills: The Neighborhood Trap
In this episode of The Penny & The Pint, the "Old Irish Guys", John and Brendan, wrap up their mini-series, Net Worth and Mental Ills. Recording live on a Wednesday before a major family flight, the guys start things off by addressing the fallout from last week's unresolved debate before diving headfirst into the final cognitive traps that derail long-term wealth.
This week, the focus turns toward the sneaky comfort zones of familiarity bias and the emotional whiplash of recency bias. John and Brendan share how easily we can over-invest in our own backyards, including a look at home-team biases and local household name stocks and reveal a wild neuroscientific discovery about what actually happens in our brains when we try to sell.
In this episode, we cover:
- BLT Apologies & Flight Plans: A formal apology for tying up twenty minutes of airtime last week, and a special send-off for the Middle School creative teams heading out to nationals.
- The Familiarity Bias: Why investing exclusively in companies with an office right down the street feels safe, and why driving 20 minutes across town doesn't equal true diversification.
- Home Bias & Global Markets: The danger of underweighting international equities like China and India, and why investors habitually ignore half of the world's total stock market capitalization.
- Recency Bias & Market FOMO: How a single great week tricks our brains into thinking a stock will rise forever, and how it perfectly mirrors the emotional doom-and-gloom cycle of an Orioles text chain.
- The Discount Paradox: A look into the herd mentality of buying high during market peaks and why stocks are the only asset people refuse to buy when they go on sale.
- The Insula & Brain Pain: The fascinating neuroscience behind the endowment effect, revealing the specific region of the brain that registers physical pain and disgust whenever you sell an asset.
Contact Us
- Visit us online: oldirishguysfinancial.com
- Email your questions: [email protected]
- Follow the Series: thepennythepint.transistor.fm
Don't let your short-term window derail your long-term wealth. Recognize the bias, open your eyes to the bigger picture, and we'll see you at the pub.
- (00:00) - Welcome and Quick Catch-Up
View all episodes
By Old Irish Guys FinancialIn this episode of The Penny & The Pint, the "Old Irish Guys", John and Brendan, wrap up their mini-series, Net Worth and Mental Ills. Recording live on a Wednesday before a major family flight, the guys start things off by addressing the fallout from last week's unresolved debate before diving headfirst into the final cognitive traps that derail long-term wealth.
This week, the focus turns toward the sneaky comfort zones of familiarity bias and the emotional whiplash of recency bias. John and Brendan share how easily we can over-invest in our own backyards, including a look at home-team biases and local household name stocks and reveal a wild neuroscientific discovery about what actually happens in our brains when we try to sell.
In this episode, we cover:
- BLT Apologies & Flight Plans: A formal apology for tying up twenty minutes of airtime last week, and a special send-off for the Middle School creative teams heading out to nationals.
- The Familiarity Bias: Why investing exclusively in companies with an office right down the street feels safe, and why driving 20 minutes across town doesn't equal true diversification.
- Home Bias & Global Markets: The danger of underweighting international equities like China and India, and why investors habitually ignore half of the world's total stock market capitalization.
- Recency Bias & Market FOMO: How a single great week tricks our brains into thinking a stock will rise forever, and how it perfectly mirrors the emotional doom-and-gloom cycle of an Orioles text chain.
- The Discount Paradox: A look into the herd mentality of buying high during market peaks and why stocks are the only asset people refuse to buy when they go on sale.
- The Insula & Brain Pain: The fascinating neuroscience behind the endowment effect, revealing the specific region of the brain that registers physical pain and disgust whenever you sell an asset.
Contact Us
- Visit us online: oldirishguysfinancial.com
- Email your questions: [email protected]
- Follow the Series: thepennythepint.transistor.fm
Don't let your short-term window derail your long-term wealth. Recognize the bias, open your eyes to the bigger picture, and we'll see you at the pub.
- (00:00) - Welcome and Quick Catch-Up