A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Thursday, July 21, 2005

Brain Damaged People Make Better Investors

I bet that title got your attention. There was a study done recently by a team of researchers from Carnegie Mellon University, the Stanford Graduate School of Business and the University of Iowa. They studied 15 brain-damaged people with normal IQs and the areas of their brains responsible for logic and cognitive reasoning were intact. But they had lesions in the region of the brain that controls emotions.

It makes perfect sense to me. We all know that if you allow your emotions to dictate your investment decisions, you will most likely make poor decisions. Take emotions out of the equation and you become a better investor. Now we know what to look for in portfolio managers!

For those interested, you can read the article(free) in today's Wall Street Journal.