What is hyperbolic discounting, and how is it related to investing? Before I answer that, let me first give you a thought experiment. Below are three scenarios that I want you to consider. Carefully read the question, and answer immediately which among the two given choices you prefer. Scenario A I’m giving you money. Which […]
Tags: cognitive bias, hyperbola, hyperbolic discounting, Investing, investor, Mindset, why people don't invest
A lot of people don’t invest even though they say it’s important. They come up with many excuses, and I gave four reasons already. Below are four more silly reasons that I hear, and why they shouldn’t be. I’m afraid to lose money. Remember inflation? By not investing, you are actually losing money – and […]
Tags: Investing, why people don't invest
Hi, my name is Fitz Villafuerte and I’m a Registered Financial Planner living in the Philippines. In 2007, I started this blog to help people learn how to achieve financial freedom. Read my story here.
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