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Neuroeconomists confirm Warren Buffett’s wisdom: Brain research suggests an early warning signal tips off smart traders

July 7, 2014 by

Investment magnate Warren Buffett has famously suggested that investors should try to 'be fearful when others are greedy and be greedy only when others are fearful.' That turns out to be excellent advice, according to the results of a new study that looked at the brain activity and behavior of people trading in experimental markets where price bubbles formed.

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