The pigeon in every investor

If even pigeons can develop superstitions in the face of random events, investors can surely do so, too. In 1948, the renowned behavioural scientist B.F. Skinner conducted a fascinating experiment with pigeons that, seventy-five years later, offers some insights into investor behaviour, at least to me. Instead of rewarding the birds for specific actions, Skinner randomly gave them food. The results were remarkable: six out of eight pigeons developed elaborate 'superstitious' behaviours, convinced their peculiar actions somehow triggered the food delivery.