{"id":58136,"date":"2025-07-25T13:59:45","date_gmt":"2025-07-25T08:29:45","guid":{"rendered":"https:\/\/www.equentis.com\/blog\/?p=58136"},"modified":"2025-07-25T13:59:50","modified_gmt":"2025-07-25T08:29:50","slug":"one-game-changing-idea-that-can-instantly-make-you-a-better-investor","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/one-game-changing-idea-that-can-instantly-make-you-a-better-investor\/","title":{"rendered":"One Game-Changing Idea That Can Instantly Make You a Better Investor"},"content":{"rendered":"
<\/div>\n

<\/p>\n\n\n\n

In one of my favourite books on investing<\/a>, The Intelligent Investor<\/em>, father of value investing Ben Graham makes a very important point right at the start.<\/p>\n\n\n\n

He argues that an investor’s chief problem, and even his worst enemy, is likely to be himself.<\/p>\n\n\n\n

So very true, isn’t it?<\/p>\n\n\n\n

Remember, this was way before the whole behaviour finance<\/a> revolution kicked off. It’s why you need to give Graham the credit for being so spot on with his observation.<\/p>\n\n\n\n

Decades later, behaviour psychologists like Daniel Kahneman and Amos Tversky would undertake a full-fledged study of the biases that affect our thinking and often come in the way of sensible decision making.<\/p>\n\n\n\n

And guess what? As far as investing is concerned, they came to the same conclusion as Graham<\/a>.<\/p>\n\n\n\n

One of their more famous works is known as ‘On the Psychology of Prediction’. They explain how humans are such bad predictors and what we can do to improve the accuracy of our predictions.<\/p>\n\n\n\n

According to them, there are 3 things to consider to make an effective prediction:<\/p>\n\n\n\n