Biases in Stock Investing

This lesson is about biases in stock investing and how emotions can influence investment decisions. The speaker mentions the concept of loss aversion, where people tend to sell their winners and double down on their losers. This can result in missed opportunities for long-term investment success. The example of Sir Isaac Newton losing money in the stock market despite being a great mind and influential scientist, is used to highlight the impact of emotions on investment decisions. The first bias discussed is loss aversion, where people have a tendency to sell their winning stocks and double down on their losing stocks. The speaker mentions the challenge of buying into a stock after it has risen in price, and the tendency to wait for a losing stock to turn into a profit, disregarding the opportunity cost of investing elsewhere.