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  • Professional Development
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Personal Finance InstitutePersonal Finance Institute
Personal Finance InstitutePersonal Finance Institute
  • About
  • Professional Development for Financial Advisors
  • Financial Education for Consumers
    • Financial Planning
    • Cash Reserves
    • Credit & Debt
    • Insurance
    • Taxes
    • Home Ownership
    • Investment Management
    • Entrepreneurship
    • College Planning
    • Career Planning
    • Marriage Planning
    • Retirement Planning
    • Longevity Planning
    • Estate Planning
    • Kids & Money
    • Crypto
    • Choosing a Financial Advisor
  • Museum of Personal Finance
  • Contact
Personal Finance Essentials

Greed

  • Back to Investment Management
  • Start Now – and Never Stop
  • Put Compounding to Work for You
  • Maintain a Long-Term Perspective
  • The Cost of Procrastination
  • The Two Ways to Manage Your Investments
  • The Power of Diversification
  • Modern Portfolio Theory: A Scientific Approach to Investing
  • The Importance of Rebalancing
  • The Best Investment Approach of All: Dollar Cost Averaging
  • Keeping More of Your Profits via Tax Loss Harvesting
  • The Goal of Investing: Financial Security
  • The Hidden Threat: Inflation and Taxes
  • Understanding Risk and Volatility
  • The Psychology of Investing: Overcoming Emotional Errors That Prove Costly

The Psychology of Investing > Greed

Greed is as dangerous to your financial health as fear.

The stock market has earned 10% per year, on average, since 1926. Yet many people prefer to pursue get-rich-quick schemes that promise instant wealth. There’s a saying on Wall Street: Bulls and bears both make money, but pigs get slaughtered.

Select a Topic Below to Learn More

  • Action Bias
  • Anchoring Bias
  • Availability Bias
  • Catastrophizing Bias
  • Compartmentalizing Bias
  • Confirmation Bias
  • Endowment Bias
  • Fear
  • Greed
  • Framing Bias
  • Herd Mentality Bias
  • Hindsight Bias
  • Illusion of Attention Bias
  • Illusion of Control Bias
  • Intuition Bias
  • Loss Aversion
  • Mental Accounting Bias
  • Optimism Bias
  • Overconfidence Bias
  • Pessimism Bias
  • Proud Papa Bias
  • Pattern Recognition Bias
  • Recency Bias
  • Regret Avoidance Bias
  • Small Sample Size Bias
  • Status Quo Bias

Will Your Money Last as Long as You Do?

12 Reasons You Need to Plan

Learn More

Will Your Money Last
as Long as You Do?

12 Reasons You Need to Plan

Learn More
How money works, and how to make it work for you
About Us

Come Discover...

  • Why Financial Planning Matters
  • Key Financial Planning Strategies
  • 12 Reasons You Need to Plan
  • Four Obstacles to Building Wealth
  • Power of Compounding
  • Understanding Your Credit Report
  • Understanding Your Credit Score
  • How to Get Out of Debt
  • Change Your Financial Mindset
  • Be Wary of Credit Repair Promoters
  • Two Ways to Manage Your Investments
  • Power of Diversification
  • Importance of Rebalancing

© 2026 Personal Finance Institute. All rights reserved. | Terms of Use | Privacy Policy

How money works, and
how to make it work for you

About Us

Come Discover...

  • Why Financial Planning Matters
  • Key Financial Planning Strategies
  • 12 Reasons You Need to Plan
  • Four Obstacles to Building Wealth
  • Power of Compounding
  • Understanding Your Credit Report
  • Understanding Your Credit Score
  • How to Get Out of Debt
  • Change Your Financial Mindset
  • Be Wary of Credit Repair Promoters
  • Two Ways to Manage Your Investments
  • Power of Diversification
  • Importance of Rebalancing

© 2026 Personal Finance Institute. All rights reserved. | Terms of Use | Privacy Policy

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