2725: Cognitive Bias by The Mad Fientist on Financial Investments & Investing Risk vs. Reward

Optimal Finance Daily - Financial Independence and Money Advice

Optimal Living Daily LLC

Business, Education, Investing, Self-improvement

4.5 • 1.3K Ratings

🗓️ 14 May 2024

⏱️ 13 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Discover all of the podcasts in our network, search for specific episodes, get the Optimal Living Daily workbook, and learn more at: OLDPodcast.com. Episode 2725: Explore the profound impact of cognitive biases on our decision-making processes, especially in high-stakes scenarios like financial investments. This episode, inspired by a Mad Fientist article, delves into everyday examples and psychological experiments that reveal our subconscious preferences for risk over certainty, influenced by how choices are framed. Read along with the original article(s) here: https://www.madfientist.com/cognitive-bias/ Quotes to ponder: "If the problem is framed as a loss, as it is in the island #1 scenario, we become risk-seeking." "Your brain is useful when setting up an investment plan but it’s not useful when you execute that plan." Episode references: The Simple Path to Wealth by JL Collins: https://www.amazon.com/Simple-Path-Wealth-financial-independence/dp/1533667926 Predictably Irrational by Dan Ariely: https://www.amazon.com/Predictably-Irrational-Revised-Expanded-Decisions/dp/0061353248 You Are Not So Smart by David McRaney: https://www.amazon.com/You-Are-Not-So-Smart/dp/1592407366 Thinking, Fast and Slow by Daniel Kahneman: https://www.amazon.com/Thinking-Fast-Slow-Daniel-Kahneman/dp/0374533555 Sources of Power: How People Make Decisions by Gary Klein: https://www.amazon.com/Sources-Power-People-Make-Decisions/dp/0262611465 Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

Click on a timestamp to play from that location

0:00.0	Looking to part ways with complicated, expensive, and uncertain shipping,
0:04.7	then give your business the edge it needs with USPS Ground Advantage shipping
0:10.0	from the United States Postal Service. Keep everything simple with clear, upfront pricing and no unexpected surcharges.
0:18.0	Keep things affordable with some of the lowest prices out there.
0:22.0	And keep it all reliable with on-time ground shipments.
0:26.6	It's time to turn shipping to your advantage.
0:29.4	Learn how at USPS.com slash advantage. USPS.com . . . . .
0:34.0	USPS Ground Advantage.
0:36.0	Simple, affordable, reliable.
0:39.0	This episode is brought to you by Revolute.
0:42.7	Revolute is your perfect travel companion for all things money.
0:46.3	You can spend in over 150 currencies with great exchange rates
0:50.4	and withdraw from ATMs all over the world, with no charges from Revolute within your plan
0:55.2	allowance. Sign up to Revolute at Revolute.com slash podcast reward and receive 20 pounds
1:00.9	when you make your first purchase with Revolute.
1:03.4	Until 18th of June 2024, 18 plus, T's and C's apply, exchange fees and fair usage limits
1:08.6	supply.
1:10.6	This is optimal finance daily episode 2725 cognitive bias by the mad finest of madfiantist.com and I'm your host and personal finance enthusiasts Diana Miriamam. This is the show where I
1:24.5	serenage you with the sweet sounds of personal finance knowledge from some of the
1:28.5	best blogs on the planet with the author's permission of course. And if you're enjoying the show, why not share it with a friend today?
1:36.0	Invite them to join the party by sending them a link to
1:39.0	OLD Podcast.com.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Optimal Living Daily LLC, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Optimal Living Daily LLC and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.