“Your mind plays tricks…”
It was a privilege to be asked to give TEDx talk recently on behavioural economics – which allowed me to give a shorter version of the sort of speech that I have given at many individual conferences and to individual pension schemes.
I highlight a couple of common biases in our industry, such as the bandwagon effect (aka the herd instinct) and hindsight bias; and touch on the concept behind System 1 and System 2 thinking, with a number of investment examples. My conclusion is that understanding behavioural economics can help greatly anyone involved in investment (portfolio managers, pension fund trustees, sales and marketing personnel etc.) through the implemenation of some simple steps. Put simply, skill can be enhanced.
As a member of The Magic Circle, my talk includes some fascinating optical illusions and a sprinkling of magic, coupled with fun audience participation in some psychological experiments – the purpose is to highlight aspects of the human mind that are relevant to us all, whether in business or our lives more generally.
Should you click on the link below, I hope you enjoy it! Let me know if I can help in any way.