Investing Profit Despite Perils of Hindsight Bias: #13
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Not being able to see the difference between what you know NOW relative to what you KNEW before IS hindsight bias - a psychological bias that can be overcome in investing. How? Choose stocks based on a sound analysis of company financial performance and for their true market value. Like politicians and weathermen, investors can't predict the future. Investors can focus on their process and recheck their thinking leading to greater profits. Remember that the world is complex and many factors influence outcomes.
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