inherent in humans. It is better to be
aware of these biases than to combat
them”. He further adds, “Experiences
of the past can sometimes bias our
future outlook. Euphoria of the past
can blur our vision of the future
and impact our decision making
abilities. Similarly, baggage from
the past impedes our ability to spot
opportunities.”
Herd Mentality Bias
There are some biases that all
investors have encountered along
their investment journey. At some
point of time or the other, investors
have been influenced by the ‘herd
mentality’ bias. The rational is that
the crowd cannot be wrong. If
everyone is investing in a certain
stock, then it must have some merit.
“Attracted by ‘irrational exuberance’,
investors tend to invest