Tactics For Better Decision Making, And Skill Versus Luck

Audio Length: 00:57:47

Michael Mauboussin is a Managing Director and Head of Global Financial Strategies at Credit Suisse. He’s also a professor of finance at Columbia Business School, and the author of several books, such as; The Success Equation and More Than You Know.

Michael is widely recognized as a thought leader on the subject of decision-making, as well as thinking about things in the way of process over outcome, and skill vs luck.

And it’s these three things which are the over-arching theme of this episode. So hopefully, you’ll pick up a few good tips from Michael, that will help to improve your ability to make better decisions (and creating better processes) as a trader.

Topics of discussion:

  • How one can judge the quality of their decisions, three examples of cognitive limitations and common biases, and where Bayes’ Theorem can be applicable.
  • Is more information the key to better decisions—does it give a false sense of confidence or improve accuracy? And the concept of weighting information…
  • One simple technique to deal with indecisiveness, general exercises you can do to improve your decision-making ability, and how the brain creates narratives.
  • When it’s more important to focus on process over outcome, the important distinction between skill and luck, and three lessons from a legendary gambler.
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    Author: Travis Esquivel

    Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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