Daniel Kahneman on Investing: Luck Vs. Skill

I have Daniel Kahnemann’s book Thinking Fast and Slow, but have yet to read it. Judging from the positive reviews and his past work, it sounds like it should be pretty good. Kahnemann was on CNBC last week discussing some themes from his book and skill and luck in the world of investing. The video is below. Take a look.

Also see “Daniel Kahneman: How cognitive illusions blind us to reason” from this Saturday’s Guardian

Kahneman: The riddle of experience vs. memory

Daniel Kahneman says a refusal to admit complexity leads people toward a simplistic view of their own self image. He sees a difference between our "experiencing selves" and our "remembering selves" and how these two “selves” perceive happiness. His insights have implications for economics, policy and our own sense of self. Take a look

How snap judgment leads to poor investing

We’re not really hard wired for making money in the markets. We use a lot of gut instincts, heuristics and plain illogic in making decisions.  The result is sub-optimal investment performance. This is the nothing new as the field of behavioral economics has really moved to the forefront of academia with Daniel Kanheman receiving the

Links: 2009-06-13

Leader Limbaugh: Chalk One Up to Obama, DNC – 538 Limbaugh tops the list–not only among Democrats, but Republicans and all national adults surveyed–as the figure identified as "the main person speaking for the Republican Party today." Reflektionen von Nassim N. Taleb und Daniel Kahneman zur Finanzkrise – Blick Log eine Podiumsdiskussion zwischen Taleb und

The psychology of economic forecasting

Submitted by Edward Harrison of the site Credit Writedowns. During the last generation, the economics profession has veered toward a ‘science’ model of economics and finance. The intellectual underpinnings for this development began with the Efficient Market Hypothesis (EMH) and has continued in no small measure due to what is often termed ‘University of Chicago

Daniel Kahneman speaks about Behavioral Economics at Georgetown graduation

The real lecture begins about 5 minutes through

Links: 2009-04-20

Willem Buiter’s Maverecon – Remembering Eddie George Willem Buiter recounts some personal tales from the late Bank of Egland Governor’s life. Fujitsu’s Self-Desctructing USB Drive for Leak-Proof Secrets » My Digital Life This is some serious James Bond technology, mate! Heavyweights Kohn,Volcker Spar Over Inflation Goal – WSJ.com By setting 2% as an inflation objective,

Peer pressure and bubbles

What has the housing bubble told us about market efficiency, social psychology and economics? Quite a lot, I believe. In the aftermath of the housing bubble, one thing is for certain: we can throw out the inane “Efficient Market Hypothesis.” It is disturbing that this rubbish has been held to for so long. But, after

Loss aversion and finding a bottom

About five years ago, Daniel Kahnemann won the Nobel Prize in Economics for his work on Behavioral Economics. This was a breakthrough because the financial markets and the economics profession had been dominated by the “efficient market,” laissez-faire, no-regulation crowd for some time. His theories go a long way toward explaining why the credit unwind