Cognitive Bias Series Part 3: Bandwagon Bias

Today we talked about the bandwagon bias. It is a tendency to want to conform, be part of the crowd, to do things because others are doing them or believe in them. It’s also known as herd mentality and is similar to groupthink. This is a bias we see daily in investing and in financial planning. It happens so often because it's natural. Nathaniel gave a couple of examples in investment history of how that bias has caused some investors' losses. Tim discussed how that im...