Behavioural Finance Quotes

“If anyone could anticipate a market drop, no one would ever invest in the market above the level to which it will decline. That is to say, market corrections are unforeseen events.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Since money is fungible, efforts to save small amounts on small purchases are absurd if you ignore them during pricier transactions. $1.75 is still worth $1.75.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Once bitten, twice shy isn't a very good investment strategy.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“More often than not, extreme events revert to the mean—the average—for no other reason than that result is more likely.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“With gambling or investing, if your gains are quick and easy, you will tend to keep the money in a separate mental account. So, if you subsequently lose it, you won't feel as upset as you'd think if you lost the money you brought to the casino. Yet, they are both pots of currency.”
― Coreen T. Sol, CFA

“Timing the market is a biased investor's game.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“The motives to sell during a market capitulation are rarely rooted in a long-term plan. If they were, the market would never be oversold.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Timing an unforeseeable event is more likely a stroke of luck than skill.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“If you've convinced yourself that a market correction is likely (your belief) to justify holding cash rather than investing (your action), you may be under the influence of cognitive dissonance.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“It doesn't matter what you paid for an investment. If it no longer suits your objectives or has poor prospects, you should sell it.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“The motivation to break even is so tempting that you'll even consider doing so at greater levels of risk than you'd typically accept. If you've heard the expression "double or nothing," you've seen this bias in action.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“It is odd behaviour to ignore smaller denominations when transacting high values since large transactions provide the most obvious opportunity to keep more of your money.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Familiarity bias drags you to the safety of your comfort zone and, in doing so, unwittingly increases your risks by limiting diversification and investment opportunities.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Stocks aren't like a pair of shoes that go on sale but keep the same useful value. The value of stocks are based on their economic prospects, which change constantly.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“If you excuse investment concentration by telling yourself that your familiarity with domestic companies or specific sectors helps you understand those investments better, your familiarity bias is the excuse for your familiarity bias.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Ironically, investing in many seemingly safe investment options puts conservative investors at the greatest risk of declining purchasing power.”
― Coreen T. Sol, Unbiased Investor: Reduce Financial Stress and Keep More of Your Money

“Once your investment account has touched a peak value, it's almost impossible to forget that number.”
― Coreen T. Sol, CFA