Biases creep into the investment process at two important stages.
First, when forming estimates.
The starting point (baseline) is key, and rather than using industry dynamics (an outside view), estimates may be influenced by company guidance (vulnerable to vested interests and dated industry dynamics given complex reporting lines), consensus estimates (themselves vulnerable to bias) or an emphasis on well-known newspaper articles.
Investment process reveals behavioral biases
Most Popular Articles
Latest Articles
Pennymac posts first-quarter profit of $39M
Loan production income shrank in the first quarter, but the company’s servicing business continues to grow
-
DOJ charges one of America’s top LOs in alleged mortgage fraud scheme
-
Top Producer Review: Features, pricing & alternatives
-
A&D Mortgage names new servicing manager
-
HUD aims to help protect communities from extreme heat
-
Freedom Mortgage founder addresses ’extraordinary’ credit profiles, profitability and products