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Devina Mehra: The art of storytelling can turn into an investment pitfall even for veteran investors

Humans are hardwired to believe stories, making them powerful but dangerous in investment. While stories resonate, the market is impersonal and doesn't care for narratives. Investment stories are often deterministic and overly simplistic, failing to account for market complexity, probabilistic outcomes, or the rare reality of sustained growth. They mislead by discarding risks and complexity, often having a kernel of truth that makes them believable. This "storification bias" can even convince the storyteller, making it difficult to adapt. Investors must challenge assumptions and consider alternative outcomes to avoid being derailed by compelling, yet flawed, investment narratives.

LiveMint · Devina Mehra · Oct 7, 2026 at 6:30 AM

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