Uncle Jim is certain Tesla stock is about to go up. He’s been right before. I mean he’s also been wrong, but only when something unpredictable happened. So, should we trust Uncle Jim knows what he’s talking about?

 

Well, I’m confident the average “Uncle Jim” is way too overconfident. Larry Swedroe says the biggest risk to most investors is staring them in the mirror, and I’d have to agree. 

 

So, how does this overconfidence manifest itself in investors, and where does it come from? Sit back as I explore the concept of self-attribution bias and how to find yourself in the Goldilocks zone of confidence where it’s not too warm, but not too cold. 

 

Mentions:

A Random Walk Down Wall Street: The Time-Tested Strategy for Successful Investing: https://amzn.to/3GsT6OH

“Men’s Honest Overconfidence May Lead to Male Domination in the C–Suite”:

https://www8.gsb.columbia.edu/newsroom/newsn/1879/mens-honest-overconfidence-may-lead-to-male-domination-in-the-csuite

“Overconfidence – Investors’ Worst Enemy” by Larry Swedroe: 

https://www.evidenceinvestor.com/overconfidence-investors-worst-enemy/

 

More of The Best Interest:

Check out the Best Interest Blog at bestinterest.blog

Contact me at [email protected]

 

The Best Interest Podcast is a personal podcast meant for educational and entertainment. It should not be taken as financial advice, and is not prescriptive of your financial situation.