Intelligent Investing – Home Bias

“Becoming more familiar with a subject does not significantly reduce people’s tendency to exaggerate how much they actually know about it. That’s why ‘investing in what you know’ can be so dangerous; the more you know going in, the less likely you are to probe a stock for weaknesses.

This pernicious form of overconfidence is called ‘home bias’, or the habit of sticking to what is already familiar… in short, familiarity breeds complacency.”

− “The Intelligent Investor” By: Benjamin Graham