08 Sep Heuristic Simplification

Curious Investor Behaviour – Number 2

Heuristic Simplification

According to Nobel laureate Herbert Simon, people are so swamped with information that they react consciously to only a tiny part of it.

We adopt rules of thumb instead of absorbing the entire data. In general, shortcuts serve us well, but the simplifying processes that are normally efficient time-savers can have disastrous consequences in the world of investment. Subjective and selective calculations produce distortions and errors of judgement.

Do you ever find yourself seduced by the convenience of shortcuts?

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About Reuben Zelwer   Reuben Zelwer established Adapt Wealth Management in 2011 to help time poor clients achieve financial freedom. For over 15 years, Reuben has helped professionals, executives, business owner and those approaching retirement make the most of their circumstances by making good financial decisions. Reuben’s professional practice is complemented by substantial voluntary work, which has included setting up financial literacy and savings programs in the local community.