The Five Behavioral Mistakes Investors Make

Michael Mauboussin, director of research at BlueMountain Capital Management, discusses the five most common behavioral mistakes he sees investors make. He explains what scientific research can teach us about investor behavior and discusses how the types of mistakes made can shift over the course of an economic and market cycle. With this background set, Mauboussin provides tips for plugging one’s behavioral leaks. Finally, he explains how one might be able to make better decisions by anticipating the mistakes of others. Originally published on September 12, 2018.