Tag: behavioural finance

How to avoid weapons of influence in investing ?

Robert B Cialdini’s Influence: The psychology of persuasion is a must read for any budding investor and thinker. In this best seller he describes six weapons of influence that are often used by marketers/smart people / organisation to stir an automatic reaction from subject many a times to the benefit of the user of weapon

What are these weapons and how we should avoid them in investing when they are used against us ?

We avoid them by learning about them, Let’s start

Reciprocation – The rule of reciprocation says we should try to repay, in kind , what another person has provided for us . Seems so obvious if someone invites you for a dinner at home you do so by inviting other person to your home .

In investing how can someone trick you ? I have experienced such situations let me throw an example at you

Complete stranger on Twitter : Hi, How are you ? I have just read “Evaluating Moats through Floats” on Tankrich and have found it really helpful, I have some more question for you ?

Me : Thank you , please let me know what questions you have.

Stranger :

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