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Long Story Short
Burney Wealth Management
21 episodes
1 week ago
Long Story Short is a weekly financial planning and investing podcast from Burney Wealth Management. Each week, your hosts Andy Pratt, CFA, CAIA and Adam Newman, CFA, CFP®, discuss the biggest questions they’re hearing from clients. They’ll occasionally bring in team members and interesting guests to discuss specialized topics like estate planning, business succession, and retirement income strategies. Founded in 1974, The Burney Company is a fee-only investment advisory firm that manages $3 billion in assets. Learn more about comprehensive financial planning at burneywealth.com.
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Investing
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All content for Long Story Short is the property of Burney Wealth Management and is served directly from their servers with no modification, redirects, or rehosting. The podcast is not affiliated with or endorsed by Podjoint in any way.
Long Story Short is a weekly financial planning and investing podcast from Burney Wealth Management. Each week, your hosts Andy Pratt, CFA, CAIA and Adam Newman, CFA, CFP®, discuss the biggest questions they’re hearing from clients. They’ll occasionally bring in team members and interesting guests to discuss specialized topics like estate planning, business succession, and retirement income strategies. Founded in 1974, The Burney Company is a fee-only investment advisory firm that manages $3 billion in assets. Learn more about comprehensive financial planning at burneywealth.com.
Show more...
Investing
Business
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The Psychology of Investing: Why We Make Bad Money Decisions
Long Story Short
35 minutes 43 seconds
1 month ago
The Psychology of Investing: Why We Make Bad Money Decisions

Andy opens with a confession: industrial psychology taught him that job interviews are terrible predictors of success. That same human irrationality shows up everywhere, especially in investing.

The hosts walk through seven behavioral biases that trip up even professional investors. From overconfidence after hitting it big on Nvidia to confirmation bias keeping us stuck in echo chambers, these mental shortcuts cost real money.

Plus, they tease next week's estate planning episode on trusts.


We cover:

  • Why overconfidence peaks when you know just enough to be dangerous
  • How confirmation bias creates cognitive dissonance with market realities
  • Loss aversion and why losses hurt 2.5x more than gains feel good
  • Recency bias making inflation feel scarier than it actually is
  • The anchoring trap of waiting for stocks to "get back" to your purchase price
  • FOMO and herd mentality driving meme stock mania
  • Home country bias leaving 35% of global opportunities on the table
  • Practical strategies to counteract each bias


⏱️ Timestamps:

  • (00:32) Why interviews predict job success poorly
  • (05:02) Behavioral finance 1.0 vs 2.0
  • (07:48) Overconfidence bias and the knowledge curve
  • (12:22) Confirmation bias and political echo chambers
  • (17:00) Loss aversion: why losses hurt 2.5x more
  • (19:56) The Yellowstone bear attack and recency bias
  • (24:07) Anchoring to purchase prices
  • (26:25) FOMO and meme stock mania
  • (29:03) Home country bias: missing 35% of opportunities
  • (33:52) Next week: When should you open a trust?
  • (34:20) Podcast disclosures


Resources:

Follow Burney Wealth Management on LinkedIn

Follow Adam Newman on Linkedin

Follow Andy Pratt on LinkedIn


#BehavioralFinance #InvestmentPsychology #InvestorBiases #WealthManagement #FinancialPlanning

The Burney Company is an SEC-registered investment adviser. Burney Wealth Management is a division of the Burney Company. Registration with the SEC or any state securities authority does not imply that Burney Company or any of its principals or employees possesses a particular level of skill or training in the investment advisory business or any other business. This content is for informational and educational purposes only. It is not intended as personalized investment advice or a recommendation.

Long Story Short
Long Story Short is a weekly financial planning and investing podcast from Burney Wealth Management. Each week, your hosts Andy Pratt, CFA, CAIA and Adam Newman, CFA, CFP®, discuss the biggest questions they’re hearing from clients. They’ll occasionally bring in team members and interesting guests to discuss specialized topics like estate planning, business succession, and retirement income strategies. Founded in 1974, The Burney Company is a fee-only investment advisory firm that manages $3 billion in assets. Learn more about comprehensive financial planning at burneywealth.com.