Mental Models discussed in this podcast:
- Opportunity cost
- Loss Aversion
- Diversification vs Concentration
- Price Anchoring
- Zero-Based Budgeting
- Commitment Bias
- Game Theory: Minimax Theorem
Please review and rate the podcast
If you enjoyed this podcast and found it helpful, please consider leaving me a rating and review. Your feedback helps me to improve the podcast and grow the show’s audience.
Follow me on Twitter and YouTube
Twitter Handle: @TreyHenninger
YouTube Channel: DIY Investing
Support the Podcast on Patreon
This is a podcast supported by listeners like you. If you’d like to support this podcast and help me to continue creating great investing content, please consider becoming a Patron at DIYInvesting.org/Patron.
You can find out more information by listening to episode 11 of this podcast.
Show Outline
The full show notes for this episode are available at https://www.diyinvesting.org/Episode51
My portfolio Current/Future State
- Owned 11 stocks
- 5 winners
- 5 losers
- 1 borderline loser
- The goal is to reduce to 5 positions
- Sold 4 stocks so far (made money on 2, lost money on 2)
- Not all “losers” lost money. Some made money.
- It’s all about future return potential from here
Summary:
It’s all about opportunity cost. Use rational analysis to overcome your behavioral biases.
