Agora Vancouver BRAIN 2011

Category: Psychology, Think Tank

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

8 Responses to “This is your Brain; This is your Brain on Equities”

  1. [...] This is your Brain; This is your Brain on Equities [...]

  2. carleric says:

    I thought slide 22 pretty much sums it up…job well done

  3. Bruman says:

    Slide 5 reminded me of a facebook post I made on monday. I’m not sure if I intended it as humor, or insight:

    “Confidence is so important in the business world. But to be supremely confident, it helps to be a little bit dumb. In business, there is a kind of sweet spot in smarts: one needs to be smart enough to sound intelligent, but too dumb to know the dozens of ways you could be wrong. Then you can be confident.”

  4. [...] Your brain on equities.  It is not a pretty picture.  (Big Picture) [...]

  5. MayorQuimby says:

    That was entertaining and probably very accurate.

  6. jmcaule says:

    “The Dunning–Kruger effect is a cognitive bias in which unskilled people make poor decisions and reach erroneous conclusions, but their incompetence denies them the metacognitive ability to recognize their mistakes.[1] The unskilled therefore suffer from illusory superiority, rating their ability as above average, much higher than it actually is, while the highly skilled underrate their own abilities, suffering from illusory inferiority. Actual competence may weaken self-confidence, as competent individuals may falsely assume that others have an equivalent understanding. As Kruger and Dunning conclude, “the miscalibration of the incompetent stems from an error about the self, whereas the miscalibration of the highly competent stems from an error about others” (p. 1127).[2]”

  7. Aaron says:

    Thank you very much Mr. Ritholtz for sharing your Agora Financial presentation. I really liked your six takeaways at the end, and especially thought about #4, During Bear Markets, Preserve Capital. I’ve been wondering how individual investors should develop a thought process to preserve capital in a world where there no longer are such things as “risk-free assets” (take that, CAPM!). Would really appreciate your response – long time reader, love your work, and thanks agian!

  8. andrewp111 says:

    Slide 22 was originally put up by the Motley Fool more than a decade ago.