• Skip to primary navigation
  • Skip to main content

Safal Niveshak

Wit. Wisdom. Value Investing.

  • Articles
  • Newsletter
  • Courses
  • Almanack
  • Stock Analysis Excel
  • Podcast
  • Books
  • Login
    • Mastermind (Value Investing Course)
    • Value Investing Almanack (Premium Newsletter)
  • Show Search
Hide Search
You are here: Home / Almanack / Behaviouronomics: Answering an Easier Question

Behaviouronomics: Answering an Easier Question

December 10, 2016 | Leave a Comment

When a satisfactory answer to a hard question is not found quickly, our mind tends to imagine a related question that is easier and constructs an answer for it. This processes, answering one question in place of another, is mostly involuntary and known as substitution principle. It’s better to stay mired in a genuine confusion than to bask in the comfort of a false conclusion.

Let me ask you a simple question – How happy are you these days?

Take few seconds to think about it. Now, let me ask you another simple question – How was your stock portfolio performance in past one month?

The second question is perhaps simpler because the data is easily available from your portfolio tracker. But is there a way that the second question would have affected the answer to your first question? “Of course not!” you would claim. First, you didn’t know the second question when you were thinking about the first answer. Second, even if you knew both the questions in advance, the second question would not have affected the answer to the first question. Right?

But what if I reversed the order of the questions? If I asked you about your stock portfolio performance followed by the question about your overall satisfaction with life?

Want to Read More? This content is exclusive for members of Value Investing Almanack. Login to read if you are a member. Else, click here to subscribe.

Benefits to VIA Members
 
  • Spotlight: Big ideas from Value Investing and why applying them in your investment decision making will be a great deal
  • InvestorInsights: Interviews with experienced value investors, learners, and deep thinkers
  • StockTalk: Thorough analysis of business models of companies (without any recommendations)
  • Behaviouronomics: Deep analysis of human behaviour and how it impacts investment decision making
  • BookWorm: Reviews of the best books on Value Investing and related subjects
  • Free Course – Financial Statement Analysis for Smart People (otherwise priced at Rs 6,900)
  • Archives: Instant access to our huge archive from the past three years
Become a VIA Member. Click to Subscribe

Join 85000+ Smart Investors

Subscribe to our best stuff on investing, stock analysis, and human behaviour. Plus get access to Seven E-Books on Investing + Two Special Reports + One Stock Analysis Template. All for FREE!

No charge. Unsubscribe anytime.

Be a part of our growing tribe. Join us on Twitter.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Join 85,000+ Subscribers and Get Our Stock Market Investing Insights Right Into Your Email

About   |   Newsletter   |   Courses   |   Books   |   Connect

Uncopyrighted & Handcrafted with in India

  • Twitter
  • Youtube
  • Instagram