A cognitive bias that influences how we process information regarding financial decisions.
Confirmation bias is the tendency to favor information that confirms our existing beliefs or hypotheses while disregarding or downplaying contradictory evidence. In finance and investment, this can lead to poor decision-making, as investors may ignore data that suggests a need for strategy adjustment, ultimately hindering their journey to financial freedom. To excel in finance, it is important to actively seek out diverse perspectives and challenge one’s own assumptions.
The most dangerous kind of waste is the waste we do not recognize.
