Anand Kumar

“Mental accounting is how we trick ourselves into believing that we are doing better than we actually are. Just like the two out of three gamblers in Las Vegas, we tend to remember our brilliant investments and forget our what-were-we-thinking ones. That’s because remembering our winners gives us pleasure and forgetting our losers stops the pain.”
― Allan S. Roth, How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn

“Some investors won’t go with broad indexing because we know it has zero chance of outperforming the market. If we framed the decision that indexing must beat the average return of a dollar invested, we are far more likely to invest in the broad index.”
― Allan S. Roth, How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn

“We all act silly with our money, and that includes me, as well. If you want to find the investors most prone to these human investing biases, that’s easy. They are the ones who are bragging about their investment performance and don’t know they are acting silly with their nest eggs.”
― Allan S. Roth, How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn

“Once we make an important decision, we like to feel good about it. We have a tendency to carefully review any information that supports our decision and dismiss any new information that leads us to believe we may have made the wrong choice.”
― Allan S. Roth, How a Second Grader Beats Wall Street: Golden Rules Any Investor Can Learn