Nming yr company

Psychologists have found the key to better investment: Keep the naming simple.

Noted in the journal Nature today:

For those of you struggling to pick a winner in the complex world of stocks and shares, help is at hand. A psychology study has found that, at least in the short-term, stocks with names that are easier to pronounce consistently outperform those with more confusing monikers.

According to Adam Alter and Daniel Oppenheimer, psychologists at Princeton University, New Jersey, it's all about fluency. When people try to understand complicated information, they tend to focus on the simplest parts. This means that people naturally favour things that are more fluent, and easier to think about.

Which explains why companies with names like "Google" and "Flickr" succeed with customers, as well. Simple names, even if they are missing vowels that the brain fills in, are much better than brands built on complex pronounciations and spellings or clever neologisms. Even if you don't have aspirations to go public, keeping your company name simple will pay dividends in customer recall and perception.

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