Annie Duke is the author of one of my favorite books, “Thinking In Bets”. I often find myself recommending it to both colleagues and friends and family who aren’t even in our business. While the book might be written by a poker player, and is somewhat about poker, it’s really about the way we think, and this applies to market participation, but also life in general. It’s a book I believe everyone should read, at least once.
In this podcast episode, I asked Annie about the differences between being humble in the face of the game we’re playing vs being humble in the face of your opponent. This is a really important concept that really helps put things in perspective.
Behavioral Finance in general, as my friend Phil Pearlman puts it, is very descriptive in nature. We are quick to judge and describe, while prescriptive models, at least in this field, have taken a back seat. So Annie provides a few different things we can do to continue to improve and become more self-aware. She says that there is no “cure”, but even incremental improvements can compound over time. She is also coming out with a new book in September of 2020 that you can pre-order here: “How To Decide: Simple Tools For Making Better Choices”. She says this is also prescriptive because of the workbook portion that is included
This was a really amazing conversation that could have gone on for hours and hours. This is her favorite topic to talk about and it’s certainly near the top of my personal list. But we got through a lot of material in a short period of time, so definitely make sure to give this one a listen!
I want to thank Annie Duke for being a guest on the podcast. This one really meant a lot to me! I hope you enjoy our conversation as much as I did.