Behavioural Finance
Confirmation Bias
Definition
What is Confirmation Bias?
The tendency to seek or interpret information that supports an existing belief.
Example in practice
How This Looks in Practice
An investor reads only reports that defend a favourite stock.
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Related Terms
Behavioural Finance
Loss Aversion
The tendency to feel losses more strongly than equivalent gains.
Behavioural FinanceOverconfidence Bias
The tendency to overestimate one's knowledge, forecasting ability, or control.
Behavioural FinanceAnchoring Bias
The tendency to rely too heavily on an initial number or reference point.
Sustainable InvestingESG Investing
Incorporating environmental, social, and governance factors into investment analysis or ownership.