Why Investor Behavior Never Changes

investor behavior

To be a good investor, you need a deep understanding of human psychology and behavior.

The first time I heard about that was when a friend told me to read Poor Charlie’s Almanack in 2015. It’s a book about the investing style of Charlie Munger.

So I bought the book, started reading it, and thought, “What does this have to do with investing?”

I found it very insightful, but at the time I didn’t grasp why the book was mostly about investor behavior.

You’ll find a lot of ideas about what not to do as an investor. You’ll learn about the most common mistakes. But you won’t get a step-by-step program for investing in stocks like Charlie Munger or Warren Buffett.

Since then, I’ve learned that investing is mostly a matter of a deep understanding of human behavior. Just reading a few mainstream books on psychology isn’t enough. 

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