We all make choices every day. Most are made instinctively and are not that high stakes. Some are incredibly high stakes yet are still delivered by and large subconsciously, driving, for example.
We all have an inbuilt system.
This is unpacked fantastically in Daniel Kahneman’s book ‘Thinking Fast and Slow.” Please read it!
Most errors in Judgement are made through the design of one’s machinery of cognition rather than the corruption of thought by emotion.
Not Answering or thinking about the right question laid out before you is a typical way people make errors of judgement.
When asked, should you invest in Tesla stock? For example, most will think, ‘do I like Tesla, Elon must or the company?
It’s the question asked that will always determine the answer given. We translate things to the easy answer, not the accurate one.
The key is, asking the right questions, which is why we developed the ebook you can download here:
The illusion that we understand the past fosters overconfidence in our ability to predict the future. We experience this all the time at Forensic Finance when in final consultations with clients, it can often be cathartic for someone to let go of past experiences to clear a path to recover a poor-performing portfolio.
Another great tool we gained from Daniel’s book is the pre-mortem: Yes Pre
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