Which Biases Should You Protect Against?

September 25, 2019
Scientists and researchers have identified over a hundred cognitive and emotional biases, but which ones are most likely to affect you? It partly depends on your age.

Listen on Apple Podcasts, Google Podcasts, Spotify or copy to your RSS reader.

Transcript Open new window

Which generation is more prone to herding—millennials or Generation X? Should anchoring bias worry baby boomers or younger investors more? In this episode, Mark Riepe is joined by Omar Aguilar, chief investment officer for equities at Charles Schwab Investment Management and an expert in behavioral finance. Mark and Omar discuss the results of a survey that identified the biases most prevalent among baby boomers, Gen X, and millennials.

  • This study from the Journal of Financial and Quantitative Analysis tests the implications of anchoring bias associated with forecasting earnings per share.
  • Another study from Information Systems Research examined the role of confirmation bias in virtual communities such as stock message boards.
  • You can learn more about nosology and the classification of diseases in this article.

Subscribe to Financial Decoder for free on Apple Podcasts or wherever you listen.

Financial Decoder is an original podcast from Charles Schwab.

If you enjoy the show, please leave us a rating or review on Apple Podcasts.


Learn more about behavioral finance. 

Out of Proportion: With Guests Damon Lesmeister & Kelly Shue

Non-proportional thinking, or focusing on absolute numbers rather than percentages, is just one way we get mixed up when we should be carefully calculating and comparing ratios.

Choiceology's Guide to Nudges

Nudges are small but powerful parts of choice architecture.