Tuesday, April 23, 2013

Seeking short-term gains at the expense of more attractive long-term rewards is suboptimal for long-term investors!

"Recent research shows that people (like other animals) often prefer small, immediate rewards to larger rewards in the future. For example, people prefer one apple today over two apples tomorrow. But if
the trade-off is far enough in the future—for example, one apple in a year versus two apples in a year and a day—people are prepared to wait for the higher reward. Seeking short-term gains at the expense of more attractive long-term rewards is suboptimal for long-term investors."
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