Are you biased? Probably … !
Chris Broome – Chartered Financial Planner
Courtesy of the genius team at VisualCapitalism.com, we’re able to share this fantastic info-graphic with you outlining 50 of the most common cognitive and behavioural biases us humans suffer from.
They range from Memory, Social, Learning, Belief, Money, and Politics.
From my own experience, the most common biases I see in some of our clients, especially at first meeting stage, are:
- Dunning-Kruger Effect (the less you know the more confident you are, and visa versa)
- Anchoring (relying too much on the 1st piece of information received)
- Confirmation bias (seek out information that confirms our perceptions)
- Status Quo bias (prefer things to stay the same)
- Sunk Cost Fallacy (invest more into the same thing rather than alter the path)
- Framing Effect (draw different conclusions dependent on how information is presented)
- Pessimism bias (overestimate bad outcomes)
- Blind Spot bias (not believing we have bias)
At Longhurst we carefully identify biases when speaking with our clients, to ensure that we are able to carefully, and at times sensitively, prevent you from making a mistake which could inadvertently blow up your financial plan.
Take a look at the below info-graphic. Do you recognise any of your own biases?
