All of us would be better investors if we just made fewer decisions.

A general limitation of the human mind is its imperfect ability to reconstruct past states of knowledge, or beliefs that have changed. Once you adopt a new view of the world (or any part of it), you immediately lose much of your ability to recall what you used to believe before your mind changed.

There's a very good reason for why economics developed the way it did, and that is that in many situations, the assumption that people will exploit the opportunities available to them is very plausible, and it simplifies the analysis of how markets will behave.

We are often confident even when we are wrong, and an objective observer is more likely to detect our errors than we are.

Below an income of ... $60,000 a year, people are unhappy, and they get progressively unhappier the poorer they get. Above that, we get an absolutely flat line. ... Money does not buy you experiential happiness, but lack of money certainly buys you misery.

The illusion of skill is not only an individual aberration; it is deeply ingrained in the culture of the [investment management] industry.

People who face a difficult question often answer an easier one instead, without realizing it.