Biases in Investor Decision Making: The Case of John DeLorean

Why do people so often make bad investment decisions – when it should have been clear from the beginning the decisions would turn sour? Using the John DeLorean case as an example, this article explores some of the natural human tendencies that adversely affect the quality of decision making. Investors, once they are aware of these biases, can take steps to counteract their influence and make more well‐informed decisions.