Unfortunately, skill in evaluating the business prospects of a firm is not sufficient for successful stock trading, where the key question is whether the information about the firm is already incorporated in the price of the stock. Traders apparently lackthe skill to answer this crucial question, but they appear to be ignorant of their ignorance.

Being wealthy is often a powerful predictor that people spend less time doing pleasurable things and more time doing compulsory things and feeling stressed.

Nobody would say, 'I'm voting for this guy because he's got the stronger chin,' but that, in fact, is partly what happens.

It's very easy for trusted companies to mislead naive customers, and life insurance companies are trusted.

Courage is willingness to take the risk once you know the odds. Optimistic overconfidence means you are taking the risk because you don't know the odds. It's a big difference.

If individuals are rational, there is no need to protect them against their own choices.

There's a tendency to look at investments in isolation. Investors focus on the risk of individual securities.