Famous Poker Player Helps Investors Play Tough Hand

In recent interview with Barron’s, award-winning poker player Annie Duke shares insights about how investors can remove emotions from decision-making and “how global markets are really just one giant poker table.” Here are highlights from the interview: On today’s uncertain environment, Duke contends, “The coronavirus is so clearly uncertain that people are more open-minded today, and because of that you can actually learn.” On decision-making and timing, Duke argues that businesses today are facing particularly… Read More

Behavioral Finance and How to Avoid Making Poor Investing Decisions

In a recent episode of the Validea podcast Excess Returns, Justin Carbonneau and Jack Forehand had an in-depth discussion about the coronavirus pandemic with Daniel Crosby, Ph.D., chief behavioral officer for Brinker Capital. Specifically, Dr. Crosby shared valuable insights and tips regarding human psychology, behavioral finance, the market and how investors can avoid making poor decisions during this time of uncertainty. Here are some highlights from the interview: Crosby referenced the 5-factor model for wellness… Read More

Five Steps to Improve Investment Decision Making

A recent article in CFA Institute shares five steps that investors can take to mitigate emotional and cognitive biases and improve their decision-making process: 1.      Acknowledge that emotional and cognitive biases exist: “We are more prone to these shortcomings than we like to think,” the article says, adding that raised awareness “helps us question our thought processes.” 2.      Adopt meditation and mindfulness: Many top executives “have long practiced and vouched for the positive effects of mindfulness and… Read More

The Danger of Judging Decisions by Their Outcomes

Judging the quality of your decisions can be one of the most challenging aspects of investing. The process can seem simple on the surface because every investing decision you make produces a measurable result in the performance that it generates, but performance is not the obvious yardstick that many investors think it is. The correct decisions in investing sometimes don’t generate the best results. The reason is that investing is not just a game of… Read More

Poker Prowess Offers and Edge in Investing

A new study suggests that hedge fund managers that are good at poker may have an edge when it comes to investment decision-making, according to an article in Bloomberg. “On one hand, there’s skill overlap,” the article argues, adding, “Both activities demand aggressiveness, accurate calculations under pressure, keen behavioral insight and shrewd risk-taking. On the other hand, poker seems like a risk-seeking activity, suggesting reckless and overconfidence managers.” The article outlines the findings of a… Read More

Three Ways to Improve Decision-Making

In his new book Farsighted: How We Make the Decisions That Matter the Most, author Steven Johnson offers case studies on some of life’s most important decisions and examines the process behind them, according to an article in Inc. In business settings, Johnson argues, there are often more tools at your disposal than you may be aware of. He outlines three steps he suggests including as part of making any significant decision: Don’t be too… Read More

Annie Duke on Investing, Gambling and Decision-Making

In a recent podcast interview with Bloomberg, legendary poker player Annie Duke—who retired from poker in 2012—explains how “getting used to dealing with noisy data” can serve you well in decision-making, including those involving investments. In the interview, Duke shares insights outlined in her new book, Thinking in Bets: Making Smarter Decisions When You Don’t Have All the Facts. Duke studied cognitive science and was pursuing a doctorate degree before becoming a professional poker player… Read More