Mental Accounting

The Mathematics of Why Dividends Are the Least Efficient Way to Get Paid

The Mathematics of Why Dividends Are the Least Efficient Way to Get Paid

Dividends, Investing, Investment Theme, Mental Accounting

There is a particular kind of investor who checks their brokerage account on dividend payment day the way a child checks under the pillow for the tooth fairy’s deposit. The money appears. It feels like a gift. It feels like the company reached into its vault, pulled out some cash, and handed it over as […]

The Mathematics of Why Dividends Are the Least Efficient Way to Get Paid Read More »

Why Your Brain Treats a $100 Bill and $100 of Bitcoin Like Two Different Currencies

Why Your Brain Treats a $100 Bill and $100 of Bitcoin Like Two Different Currencies

Behavioral Finance, Editors Pick, Mental Accounting

Your brain is a liar. Not in the malicious sense, but in the way it processes value. Hand someone a crisp hundred dollar bill and watch their eyes light up. Show them $100 worth of Bitcoin on a screen and you’ll get a very different reaction. Same value, wildly different emotional response. This isn’t about

Why Your Brain Treats a $100 Bill and $100 of Bitcoin Like Two Different Currencies Read More »