The Ostrich Effect: Timing Not Denial

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This weekend I was reading about the Ostrich Effect in behavioural finance, our tendency to avoid information that could bring discomfort. The term comes from the metaphor of an ostrich hiding its head in the sand, believing unseen risk is less real.

In practice, it shows up in subtle ways. An investor may hesitate to revalue a portfolio when markets turn, choosing patience over immediate recalibration. A founder may hold off on revisiting team structure after a hiring surge, knowing stability often needs time before analysis is useful.

It made me pause: the Ostrich Effect reminds us that decisions are rarely just rational, they carry the weight of timing, context, and readiness.

How do you decide when to look away, and when to look straight on?