We like to believe our financial decisions are logical, well thought out, and based on facts.
But in reality, much of what drives our decisions isn’t logic—it’s behavior.
Psychologists call these patternscognitive biases—mental shortcuts our brains use to make decisions more quickly. They’re incredibly useful in everyday life, but when it comes to investing, they can quietly influence us in ways we don’t always recognize.
For example:
- Hindsight bias can make us believe past outcomes were predictable, leading to overconfidence
- Availability bias can cause us to overweight recent headlines or market swings
- Regret aversion can keep us from making decisions at all, simply to avoid the feeling of being wrong
These aren’t mistakes—they’re human tendencies. And even experienced investors aren’t immune.
One of our favorite books that explores this idea isThe Psychology of Money by Morgan Housel. What makes it so impactful is its simplicity. It doesn’t focus on complex strategies—it focuses on how our behavior shapes financial outcomes over time.
A few of our favorite takeaways:
- Doing well with money has less to do with what you know, and more to do with how you behave
- Long-term success often comes from consistency, not perfection
- Confidence and humility need to coexist when making financial decisions
It’s the kind of book that sticks with you—and often changes how you think about money in subtle but important ways.
If you’ve never read it, we have a copy in the office you’re welcome to borrow—just let us know. We’re always happy to share resources that spark meaningful conversations.
And if this topic resonates with you, we’ll be continuing the conversation at our nextIntentional Insights Investor Breakfast on Thursday, April 30th at 9:00 AM at White Lotus Cafe.
As always, coffee and breakfast are on us—and you’re welcome to bring a friend.