ISMS 20: Larry Swedroe – Do You Extrapolate From Small Samples and Trust Your Intuition?

<p>In this episode of Investment Strategy Made Simple (ISMS), Andrew and Larry discuss a chapter of Larry’s book <em>Investment Mistakes Even Smart Investors Make and How to Avoid Them</em>. In this third episode, they talk about mistake number three: Do you believe events are more predictable after the fact than before? And mistake number four: do you extrapolate from small samples and trust your intuition?</p><p><strong>LEARNING: </strong>Know your investment history. Don’t be subjected to confirmation or recency biases.</p><p>&nbsp;</p><blockquote class="ql-align-center"><strong>“The key to long-term success is having a deep understanding of history and not being subjected to recency bias.”</strong></blockquote><blockquote class="ql-align-center">Larry Swedroe</blockquote><p>&nbsp;</p><p>In today’s episode, Andrew continues his discussion with Larry Swedroe, head of financial and economic research at <a href="https://buckinghamwealthpartners.com/" rel="noopener noreferrer" target="_blank">Buckingham Wealth Partners</a>. You can learn more about Larry’s Worst Investment Ever story on <a href="https://myworstinvestmentever.com/ep645-larry-swedroe-beware-of-idiosyncratic-risks/" rel="noopener noreferrer" target="_blank">Ep645: Beware of Idiosyncratic Risks</a>.</p><p>Larry deeply understands the world of academic research and investing, especially risk. Today Andrew and Larry discuss a chapter of Larry’s book <a href="https://amzn.to/3J5ZHz4" rel="noopener noreferrer" target="_blank"><em>Investment Mistakes Even Smart Investors Make and How to Avoid Them</em></a>. In this third series, they talk about mistake number three: do you believe events are more predictable after the fact than before? And mistake number four: do you extrapolate from small samples and trust your intuition?</p><p>Missed out on previous mistakes? Check them out:</p><ul><li><a href="https://myworstinvestmentever.com/isms-8-larry-swedroe-investment-mistake-no-1-are-you-overconfident-in-your-skills/" rel="noopener noreferrer" target="_blank">IS