74% believed that they were above average at investing. Some 74% of fund managers responded in the affirmative. ![]() James Montier conducted a survey of 300 professional fund managers, asking if they believe themselves above average in their ability. However, it is obviously a statistical impossibility for most analysts to be above the average analyst. In this industry, most market analysts consider themselves to be above average in their analytical skills. Understanding where the markets are going and so on is one of the most important skills in finance and investing. Overconfidence Bias in Finance and Investing Learn more in CFI’s Behavioral Finance Course. This guide will unpack the overconfidence bias in more detail. It can be a dangerous bias and is very prolific in behavioral finance and capital markets. ![]() In short, it’s an egotistical belief that we’re better than we actually are. Overconfidence bias is a tendency to hold a false and misleading assessment of our skills, intellect, or talent.
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