Category Archive

In the book Choices, Values, and Frames, Daniel Kahneman and Amos Tversky explain why investors need to make peace with their losses. Here’s an excerpt from the book: This analysis suggests that a person who has not made peace with his losses is likely to accept gambles that would be … Read More

In his book – Thinking Fast And Slow, Daniel Kahneman discusses how often you should check your portfolio for optimum returns. Here’s an excerpt from the book: The combination of loss aversion and narrow framing is a costly curse. Individual investors can avoid that curse, achieving the emotional benefits of … Read More

In his book – Thinking Fast And Slow, Daniel Kahneman says there is one question that most investors can’t answer in order to be successful. Here’s an excerpt from the book: Why do investors, both amateur and professional, stubbornly believe that they can do better than the market, contrary to … Read More

In Daniel Kahneman’s book – Thinking Fast and Slow, he provides some research that exposes the illusion of skill in investing. Here’s an excerpt from the book: Some years ago I had an unusual opportunity to examine the illusion of financial skill up close. I had been invited to speak … Read More

Some years ago Daniel Kahneman and Gary Klein wrote a paper titled – Conditions for intuitive expertise: a failure to disagree, in which they explored the differences between two approaches to intuition and expertise that are often viewed as conflicting: Heuristics and Biases (HB) and Naturalistic Decision Making (NDM). Starting … Read More

Here’s a great interview with Daniel Kahneman speaking on the Politics And More podcast about the impact of the Coronavirus on society. Here’s an excerpt from the interview: For old people like me the prospects are not good. I see very little reason for optimism. I mean at the best … Read More

Shane Parrish recently interviewed Daniel Kahneman on his Knowledge Project Podcast. During the podcast Kahneman reveals the actions we can take to overcome the biases that cripple our decision-making, damper our thinking, and limit our effectiveness. He also discusses what everyone, including investors, can learn from Ray Dalio at Bridgewater … Read More

Here’s a great passage from Daniel Kahneman’s book – Thinking Fast and Slow, in which he discusses the ‘Illusion of Understanding’, illustrated by the role that luck had on the founders of Google saying: The trader-philosopher-statistician Nassim Taleb could also be considered a psychologist. In The Black Swan, Taleb introduced … Read More

For the majority of stock pickers successful investing is thought to be based on some degree of skill. The truth is however that successful stock picking for most amateur and professional investors is due mainly to ‘luck’ not skill. Everyone knows investing is important, but it can also be overwhelming. … Read More