There are a few company leaders that I highly regard and make sure I stay up-to-date with their activities, comments and opinions. One of them is Dr. Sam Sicilia, Chief Investments Officer at HostPlus. In his recent media interview, he identified a number of behavioral biases which I’d like to share on my blog.
Unconscious bias and behavioral bias have been very popular topics over the past two years. The more I learn about it, the more I understand that everyone is biased to some extent. Hence, when making important decisions, we need to be aware of our biases and know how to deal with them.
- Over confidence bias – “we’re better than the others”
- Conservatism bias – “clinging to your own view / old view”
- Confirmatory bias – “looking for information / data in support of your view (and dismissing data that does not support your view)”
- Availability bias – “hear on media about a hot market or asset and then deciding you want a piece of it”
- Self attribution bias – “a good outcome occurs as I did something good; a bad outcome was due to someone else’s fault / outside forces / things that cannot be controlled”
- Actions bias – “I must do something, while, in reality, doing nothing is often the best action”
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