STRATEGIES FOR FAMILIES WORTH $5 MILLION TO $500 MILLION
The insights you’ll discover from our published book will help you integrate a variety of wealth management tools with financial planning, providing guidance for your future security alongside complex financial strategies, so your human and financial capital will both flourish.
Clients frequently share with us how the knowledge gained from this book helped provide them tremendous clarity, shattering industry-pitched ideologies, while offering insight and direction in making such important financial decisions.
When a market crash happens, or a company goes under or falls in value too fast for people to react through market timing, investors look for causes, hoping to use them for future market timing. They regret not having spotted the warning signs while it still could have made a difference. Bias hindsight makes past events look more predictable than they are in fact.
In investing, as Breaking Down Finance puts it, this produces parallel market outcomes. It “deludes us into thinking that future events are more predictable than the fact. This way, hindsight bias tends to make many investors overconfident.” The last thing you want is an overconfident investment manager. You will get more information on how to remove the hindsight bias for your investments on this page.
Hindsight bias might confuse investors from a fundamental analysis of a company. Holding to the intrinsic valuation approach allows them to make decisions based on data and not personally.
Intrinsic value is the understanding of a stock’s real value, which is dependent on all factors of the company which may or may not be the same as the market price.