Investing | 100MentalModels

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A split-panel sketch showing that the pain of losing is greater than the pleasure of gaining. On the left, a person has a small smile while finding $100. On the right, the same person has an intensely pained and exaggerated expression while dropping $100.

A split-panel sketch showing that the pain of losing is greater than the pleasure of gaining. On the left, a person has a small smile while finding $100. On the right, the same person has an intensely pained and exaggerated expression while dropping $100.

Overcoming Loss Aversion for Smarter Investing

At its core, Loss Aversion is the observation that for human beings, the emotional impact of a loss is significantly more intense than...

Aug 166 min read

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