You are your own worst enemy
If our goal as investors is to be the next Warren Buffet, then we are sadly setting ourselves up for disappointment. Warren has a very unique skillset and has an investment intuition that is easy to study but virtually impossible to replicate with the same results. Instead, your goal should remain to be a more authentic version of yourself. In The Intelligent Investor, Warren's famous teacher, Benjamin Graham, said, "The investor's chief problem-even his worst enemy-is likely to be himself."
You have just studied several nuances of behavioral finance. Your goal for this assignment is to find two information processing biases that you find in yourself and write a paper about them. The intent of this assignment is to help you think about you might react in a real investment scenario. You should write about your understanding of the nature of the chosen bias and how it plays out for you. Also, you should think about a few different ways that you could combat this bias in real world trading scenarios.
Each bias will be worth half of the points for the project. Deductions may be applied if the discussion is too simplistic...I am looking for an in depth self-analysis. Deductions will also be made for grammatical errors. Read your document out loud and see if anything sounds funny when spoken. That is one trick that I use myself sometimes.
Required Formatting:
You need to write a 1-2 page, single-spaced paper detailing what you have discovered. Your document should be in Times New Roman, 12 point font with 1-inch margins. Type your name and the assignment's name in the Header ("Insert" tab, then select "Header" in MS Word). Do not include a heading in the body of your text to fill space...I will remove it when determining the length requirement. Organize your paper into two subheadings...one for each bias that you are discussing. You may use 1 image (google "snipping tool" if you do not know how to use it), but it needs to be no larger than 3 inches by 3 inches.
