People Like Us Invest Like This - Remastered with New Introduction

03/23/22 • 27 min

This week, we revisit a classic episode released five years ago. In a newly recorded introduction, David shares the background on the episode and why he chose to release it again in its newly edited form.

Topics covered include:

The availability heuristic and confirmation bias
How to deal with extreme events when most days are just like the day before
How chaos and unpredictability is used as a leadership strategy
Why do we need a point of view to guide our actions when investing
How to manage financially in a increasingly complex and risky world

Show Notes

Uncertainty – Lawrence M. Krauss – Edge

Regression To the Mean – James J. O’Donnell – Edge

Excerpts from Seth Klarman’s 2016 year end letter to his clients as quoted in the New York Times

Messy: The Power of Disorder To Transform Our Lives – Tim Harford

Seth Godin Course on Presenting To Persuade

Ultra-Easy Money: Digging The Hole Deeper? – William R. White

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Topics covered include:

The availability heuristic and confirmation bias
How to deal with extreme events when most days are just like the day before
How chaos and unpredictability is used as a leadership strategy
Why do we need a point of view to guide our actions when investing
How to manage financially in a increasingly complex and risky world

Show Notes

Uncertainty – Lawrence M. Krauss – Edge

Regression To the Mean – James J. O’Donnell – Edge

Excerpts from Seth Klarman’s 2016 year end letter to his clients as quoted in the New York Times

Messy: The Power of Disorder To Transform Our Lives – Tim Harford

Seth Godin Course on Presenting To Persuade

Ultra-Easy Money: Digging The Hole Deeper? – William R. White

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Previous Episode

Do We Even Need Leaders?

How societies have functioned without leaders, including leaderless megacities that survived over 800 years.

Topics covered include:

Is geopolitics more like chess or poker
Why analysts think Putin will soon agree to a settlement with Ukraine
Do most development occur from the top-down or bottom-up
What are some examples of leaderless societies and organizations
How social capital and enforcement mechanisms allow the world to function without leaders telling everyone what to do
How companies are struggling with the workplace of the future and the role of leadership
Why do we need more leadership and fewer bosses

Thanks to Mint Mobile and Policygenius for sponsoring the episode.

For more information on this episode click here.

Show Notes

The Next 100 Years: A Forecast for the 21st Century by George Friedman

Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts by Annie Duke

Possible Outcomes of the Russo-Ukrainian War and China’s Choice—U.S.-China Perception Monitor

Why Is Leadership Important? by Eric Beato—Babson Thought & Action

Do We Need Leaders? by Jimmy Guterman_Harvard Business Review Home

3 Reasons Why We Need Leaders—Jonathan Sandling

If We’re All Talented People, Why Do We Still Need a Leader? by Angelina Phebus—Lifehack

Trust, Associational Life and Economic Performance by Stephen Knack

Is hybrid work the worst of both worlds?—The Economist

The Dawn of Everything: A New History of Humanity by David Graeber, David Wengrow

Related Episodes

203: Is Investing More Like Poker or Chess?

280: Travel and the Trust Economy

See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Next Episode

How Stories Drive Our Happiness and Financial Success

Stories determine economic and financial outcomes, both our own and the world in aggregate. Here's how to craft and follow stories that will lead to better financial outcomes and greater happiness.

Topics covered include:

How financial narratives give us the confidence to take action in the face of uncertainty and potential loss
How the greater the stakes, the more we rely on anecdotal evidence rather than statistics
Is the world more stable and predictable or in a constant state of disorder
How stories determine what we buy and aspire to and how marketers try to influence those stories
How stories of fear and greed influenced economic outcomes in the 1920s and 1930s
How more precise stories lead to greater confidence and potentially to manipulation.
How to get off the hedonic treadmill in order to be happier

Thanks to OurCrowd and Policygenius for sponsoring the episode.

For more information on this episode click here.

Show Notes

Joseph Campbell & The Hero’s Journey by Tamlorn Chase—Odyssey Online

Panarchy: Understanding Transformations in Human and Natural Systems by Lance H. Gunderson

Horisaki Design & Handel

Optimizing SKU Selection for Promotional Display Space at Grocery Retailers by Pak Et al.

The Role of Sentiment in the Economy of the 1920s by Kabiri Et al.

Monetary Policy and the Management of Uncertainty: A Narrative Approach by Bank of England Publications Et al.

Impressed by Numbers: The Extent to Which Novice Investors Favor Precise Numerical Information in a Context of Uncertainty by Batteux Et al.

When poignant stories outweigh cold hard facts: A meta-analysis of the anecdotal bias by Freling Et al.

Narrative Economics: How Stories Go Viral and Drive Major Economic Events by Robert J. Shiller