We like choice. Or at least some like to claim that they like choice. Consider the portfolio decision-making process. When presented with too many alternatives—such as funds, securities, or venture deals—certain investors may simply shut down and make no decision at all. Still others will mimic a recent outcome in which they found satisfaction, while a third group may take casual advice from their peer group, without any independent analysis. Each scenario emphasizes an irrational human trait: We can be lazy decision-makers. And that quality may ultimately impact our portfolio-return prospects. ■
Learn more at The Atlantic.
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