Mental Models: Will Toilet Paper Stock Surge During Pandemic?: #57
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Everyone needs toilet paper! The initial increase in buying of toilet paper (AKA tissue paper) at the start of the COVID-19 crisis was likely due to a hoarding response, which is an instinctive psychological bias response found in nature. Hoarding is not always negative, in this case those that bought lots of toilet paper and hand sanitizer were more prepared. Tissue/Toilet paper made for home use is a different product, then toilet paper made for a public toilet. Although hoarding may not be continuing, more time is being spent at home has changed the needs for public vs home toilet/tissue paper. Thus, there is an increase in tissue products for at home use, and likely an increase in private label AKA store brand use of tissue. Why? Once you have tried private label tissue you may not feel there is much of a difference, and you can save money. With more people out of work, private label brand tissue will be one way they can save money. However, the ‘status quo bias’ also known as the default effect will keep us buying name brand tissue products over private label. It avoids us having to take a risk of an unknown product, which might result in money wasted if we don’t like the private label product. Stay safe and healthy out there! For more on best investing strategies, avoiding bias and learning about your brain BUY 5 star reviewed “Understanding Behavioral Bia$” on Amazon - link here: http://amzn.to/2XHtsOE
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