Hersh Shefrin

Failure paralyzes clients

People who lose $1,000 feel bad. People who find $1,000 feel good. But the person who finds $1,000 doesn’t feel as good as the person who loses $1,000 feels bad. In fact, the loser weighs on the issue twice as heavily as the gainer. That’s loss aversion.

By Hersh Shefrin | May 29, 2012

2 min read