Larry Swedroe: Impact Of Bias

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Random Walker
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Joined: Fri Feb 23, 2007 8:21 pm

Larry Swedroe: Impact Of Bias

Post by Random Walker » Fri Nov 02, 2018 8:34 am

https://www.etf.com/sections/index-inve ... mpact-bias

Larry reviews a paper centered on active managers repurchase of stocks they previously sold. They are more likely to repurchase stocks that made them profits than ones that resulted in losses. Their emotional bias results in worse outcomes than if they had just held on. The pros, like us, are very human. Index and passive funds avoid human behavioral biases.

Dave

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