In this article we discuss familiarity bias, a type of mental shortcut that substitutes the correct answer with what’s familiar rather than what’s right. This can often lead to excessive risk and poor decision making and many portfolios betray the effect of familiarity bias in their construction.
- Portfolio Insights June 2017 – It’s time to include risk measures alongside super investment returns
- Portfolio Insights April 2019 – Why nothing has changed since the global financial crisis
- Portfolio Insights March 2019 – Money Weighted Returns
- Portfolio Insights February 2019 – Product Suitability
- Portfolio Insights January 19 – Value of strategic advice