Humans are naturally bad investors - By Edward Chancellor
Money and Finance

Humans are naturally bad investors - By Edward Chancellor


The aim of investment is, in the words of John Maynard Keynes, to “defeat the dark forces of time and ignorance”. Today, those forces appear as dark as at any time in our history. Rather than despairing, it is time to consider how we make decisions under conditions of uncertainty.

The good news is that Daniel Kahneman, the Nobel laureate and founder of the behavioural school of economics, has recently published a magnificent compendium of his research. The bad news, as Mr Kahneman reminds us over nearly 500 pages of Thinking, Fast and Slow, is that our brains are not well designed to exercise sound judgment.

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Related book: Thinking, Fast and Slow

Related previous post: Authors@Google: Daniel Kahneman





- Daniel Kahneman's Long Now Talk
Link to video: Daniel Kahneman: Thinking Fast and SlowBefore a packed house, Kahneman began with the distinction between what he calls mental “System 1”---fast thinking, intuition---and “System 2”---slow thinking, careful consideration and calculation....

- Daniel Kahneman, In Conversation With Cass Sunstein
On February 3, 2014, Daniel Kahneman, Nobel Prize-winning author of Thinking, Fast and Slow, spoke with Cass Sunstein, Robert Walmsley University Professor in Spangler Auditorium at Harvard Business School. Link [H/T The Big Picture] ...................

- Sam Harris Asks Daniel Kahneman A Few Questions
Much of your work focuses on the limitations of human intuition. Do you have any advice about when people should be especially hesitant to trust their intuitions? When the stakes are high. We have no reason to expect the quality of intuition to improve...

- Freeman Dyson Reviews Kahneman’s “thinking, Fast And Slow”
Found via Farnam Street. Link to Dyson’s review: How to Dispel Your Illusions………………..Book: Thinking, Fast and SlowRelated previous post: Authors@Google: Daniel Kahneman ...

- Two Brains Running
In 2002, Daniel Kahneman won the Nobel in economic science. What made this unusual — indeed, unique in the history of the prize — is that Kahneman is a psychologist. Specifically, he is one-half of a pair of psychologists who, beginning in the early...



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