The biggest investor mistakes Part 8: It’s all about framing: your perception depends on the context

February 20, 2019

by Prof. Manfred Frühwirth

Together with the Austrian business magazine GEWINN, Prof. Manfred Frühwirth, longstanding faculty member and Acedemic Director at the WU Executive Academy, is collecting the most important insights from behavioral finance. The series aims to make people aware of common mistakes in financial decisions and their consequences. Every month, the financial expert describes a typical behavioral error based on concrete examples. Investors should be motivated to think about their own investment behavior and perhaps to avoid one or the other pitfalls.

Part 8 of the series:

It’s all about framing: your perception depends on the context

Without context, we are, more often than not, unable to understand things. As far as language is concerned, we constantly put information into a frame or context. Such a frame of reference is vital. But it can also be fatal — if it is flawed. In the 8th part of our GEWINN/WU Executive Academy series "The biggest investor mistakes", Prof. Manfred Frühwirth, Academic Director of the Professional MBA Finance, explains why it is also particularly important for investors to look behind the context and regularly question their own framing - and above all that of others.

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