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BOURBON FINANCIAL MANAGEMENT
Patrick Bourbon
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Did you know that your vision can literally "trick" you? Did you know that human attention is limited and that we can't analyze all the information we receive?
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This one minute video shows that human attention is limited and that we can’t analyze all the information we receive.

http://viscog.beckman.illinois.edu/flashmovie/15.php

 

We tend to pick the information that we need to prove that our thinking is correct.

If we are bullish and long the financial market, we tend to read bullish reports. Individuals have a tendency to simplify decisions (good company -> good investment, momentum strategies -> chasing performance).

Furthermore, investors believe their information is correct and they are better at interpreting information and making decisions. We have an inability to fully incorporate new information into risk and return forecasts. The failure to recognize the true risk of an investment makes us trade more frequently than can be justified by the information. Also, we tend to remember only the good decisions so our memories don’t disagree with our opinion on our abilities.

 

Check a slide show: The Human Brain…tricks us whenever it can!






 

We would welcome the opportunity to know you better, introduce ourselves, share with you the work we do for our clients, and position ourselves as a useful resource for you. A consultation would be a wise first step toward achieving your vision.

 

Getting to know you, your needs and motivations, is as important as you evaluating our capabilities to help you meet your financial goals. We do not charge a fee for our initial consultation during which we review your portfolio, and discuss your goals and objectives.



 

 
“ Worldly wisdom teaches that it is better for reputation to fail conventionally than to succeed unconventionally.”
— John Maynard Keynes, The General Theory of Employment, Interest and Money, 1936
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Thanks to the 500+ of you who have read the Best of BFM Newsletter (click here), which summarizes the newsletters you enjoyed in 2010-2011. By now, you should have uncovered that financial decisions are not only driven by rationality but they are also influenced by emotions. You also found out that your vision can literally "trick" you whenever it can (click here)!



Has BFM Helped You Yet? Click Here for Your Personal Guide to Financial Peace of Mind

 
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Bourbon Financial Management, LLC
616 W. Fulton St. Suite 411
Chicago, IL 60661
(+1) 312 909 6539 - patrick@bourbonfm.com
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