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Chapter 1 – Making Sense of What You See
- Anchoring: An Invisible Hand
- Representativeness: If It Walks Like a Duck
- Money Illusion: The Rule of 72 and the Risk of Inflation
- Recency Effect: A Clear and Present Danger
- Reversion to the Mean: That Makes Sense but Doesn’t Answer Anything
- Availability Bias and Distortion: Overestimating What You Can Easily Recall
- Familiarity Bias: Recognizing a Stranger
- Proportional Money Effect: Why We Save Pennies Only to Neglect Dollars
- Mental Accounting: Pigeonholing Money
- Endowment Effect: Loyalty Reward Points are Not Free Money
- Status Quo Bias: The Influence of Inertia
Chapter 2 – Controlling Risk
- Conservativism: Close but No Cigar
- Gambler’s Fallacy: Heads or Tails?
- Possibility and Certainty Effect: A Bird in the Hand is Worth Two in the Bush
- House Money and Break-Even Effect: What Just Happened?
- Disposition Effect: The Worst Time to Lock in a Profit
- Loss Aversion and Fals Risk Control: Ante Up!
Chapter 3 – Wanting to Be Right
- Overconfidence: We All Can’t Be Above Average
- Hindsight Bias is Convincing: I Knew It!
- Cognitive Dissonance: The Grapes Were Sour Anyway
- Confirmation Bias: Buying and Selling a Boat
- Availability Bias, Recency Effect, and Real Estate: House Prices Always Rise, Right?
- Sunk Cost: Why Camping Seems Affordable
- Barnum and Forer Effect: A Fool is Born Every Minute
- Loss Aversion Undermines Your Beliefs: Trading Money for Sleep
- Herd Mentality: consensus Hurts Performance
Chapter 4 – Developing Your Personal Economic Values
- Why Commit to the Eight Steps?
- Personal Economic Values Workbook
Chapter 5 – Adopting Unbiased Habits
- The Point of Impact
- Don’t Take It Personally
- Quantify Your Returns
- Keep a Journal of Investment Decisions
- The Power of SMT
- Just Pick One
- Automate, Outsource, and Schedule
- Stop Checking Your Investments
- Establish Investment Constraints
- Stick to Your Plan
- Reframing Decisions
- No Safety in Numbers
- Money Doesn’t Care Where it Came From
- Craft Your Personal Investment Policy Statement (click here)
- I Knew-It-All-the-Time
- Cut Your losses
- Trees Don’t Reach the Sky
- In the Absence of Research
- Be Average
- The Unbiased Habit Checklist
Chapter 6 – What an Investment Advisor Can and Cannot Do
- The Bottom Line
- Bull Markets and DIY
- Is Passive Investing a Silver Bullet?
- Avioding Hindsight Bias with Training
- When to Trust Expert Investment Advice
- Know What You Don’t Know
- Bias Resistance
- Portfolio Abandonment
Chapter 7 – Can Money Buy You Happiness?
- Happiness, Work, and Retirement
- Happiness and Spending Money
- Happiness and Gluttony
- Health, Happiness, and Your Money
- How Much Is Enough?