The Psychology Behind Making Better Decisions with Global Financial Strategist Michael J. Mauboussin
Do you want to improve your decision-making a build a better mental toolkit? In this episode we explore the psychology behind making better decisions with Michael J. Mauboussin.
Michael is the Head of Global Financial Strategies at Credit Suisse. He is the author of three books, including More Than You Know: Finding Financial Wisdom in Unconventional Places, named in the The 100 Best Business Books of All Time. Michael also serves as an adjunct professor of finance at Columbia Business School.
We discuss the following topics:
The interconnectedness of knowledge across many different disciplines
How to switch to the “outside view” to make better predictions and decisions
How to improve your results without being any smarter or better trained
A fascinating psychology study that demonstrates how we deceive ourselves
The biggest biases that cause investors to make bad decisions (and how to combat them)
Why the right tools aren’t enough to make you a successful investor
Concrete steps to start down the path of better decision-making
How to understand the difference between luck and skill in complex fields like business, investing, and entrepreneurship
How to become “numerate” and understand the physics and mathematics of misjudgment
What statistical base-rates are and how they can improve your decisions
How reversion to the mean really works and why you’ve been misunderstanding it
The power of checklists and other decision-making tools
And much more!
Thank you so much for listening!
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SHOW NOTES, LINKS, & RESEARCH
[Book] Peak: Secrets from the New Science of Expertise by Anders Ericsson (see here).
[Book] Tales from Both Sides of the Brain: A Life in Neuroscience by Michael S. Gazzaniga (see here).
[Book] A Curious Mind: The Secret to a Bigger Life by Brian Grazer and Charles Fishman (see here).
Michael Mauboussin Articles on Value Walk (see here)