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Investor bias: The eye only sees what the mind is prepared to comprehend

By Tom Stevenson, Investment Director, Fidelity Australia

Perhaps the most unhelpful of the psychological flaws we are prone to as investors is ‘confirmation bias’. Our desire to seek out information which reinforces our existing beliefs and to reject anything which undermines our prejudices is powerful and dangerous.

As Warren Buffett said: ‘what the human being is best at doing is interpreting all new information so that their prior conclusions remain intact’.

Find out more: https://goo.gl/SvRgHQ

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