- Seen people pressing elevator button despite having already pressed?
- Noticed people honking their horns repeatedly when the traffic signal is still red?
- Come across people who keep tapping their screens when phone takes long to respond?
We tend to do things despite knowing that they might not make a difference to the situation.
Action Bias makes us feel good to be in control, we equate action = progress
Doing nothing makes us feel miserable and lazy, leading to Action
The biggest challenge for long-term investing is urge to control action during volatile times
We risk of missing out on few best days and Significant returns come in those few days
If you did not do anything you would have got annualised return of 14% as per below chart
the original article appeared here
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