This week in ISM, I continued learning about behavioral finance. My topic for my speech was the relationship between human behavior and finance. One reason I am interested in this topic falls under Warren Buffett’s quote: “Be fearful when others are greedy, and greedy only when others are fearful.” This quote alone shows the importance of thinking independently about financial matters and understanding how human emotions can play a major role in financial decisions.
Beyond understanding that the field of finance also includes the study of human psychology, as it plays an important role in the choices people make. For instance, understanding how emotions like fear and uncertainty can cause individuals to make impulsive and poor financial decisions allowed me to become interested in learning more about how to recognize these emotions and avoid them to make more informed financial decisions.
The challenge of presenting my topic allowed me to discuss why the field of behavioral finance fascinates me and what I hope to accomplish this year. I was successful in conveying my interests in business and leadership to the audience. Furthermore, I gained confidence in discussing my field of interest to the audience.
Some of the concepts that I would like to explore within the field of behavioral finance include topics like cognitive biases, risk perceptions, and the role of emotions in making financial decisions. I am especially interested in learning if individuals can recognize their financial biases and how they can avoid them. Additionally, I hope ISM helps me understand not only how financial decisions are made, but why people make them.