Don’t Give Me the Facts, Give Me Something I Can Understand

Here’s the opening of a fascinating article on cognitive fluency from the Boston Globe:

Imagine that your stockbroker – or the friend who’s always giving you stock tips – called and told you he had come up with a new investment strategy. Price-to-earnings ratios, debt levels, management, competition, what the company makes, and how well it makes it, all those considerations go out the window. The new strategy is this: Invest in companies with names that are very easy to pronounce.
This would probably not strike you as a great idea. But, if recent research is to be believed, it might just be brilliant.

(HT: Timmay Sykes)

Posted by on March 10th, 2010 at 10:15 am


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