With a monthly full money extra, I'm Chris Hill.

Michael Lewis is known for writing bestselling books like The Big Short and Money Ball.

A few years back, I talked with him about the undoing project, a friendship that changed

our minds.

The book focuses on the relationship between two Israeli psychologists who created the

field of behavioral economics, Daniel Coniman and Amos Tversky.

And considering their differences, it's amazing they were able to work together.

Tversky was an extrovert, very self-confident, very comfortable being the center of attention.

Daniel Coniman isn't just introverted, he's a man plagued with self doubt.

Two men so different, you wonder how they even got along.

Well, I'd say the big difference is an ability to know at a deep level when you're dealing

with an uncertain situation, some judgment you have to make, some risk you have to take.

Then all you can control is the process, the outcome is inherently unpredictable.

So what you do is you bring that spirit of confidence to the creation of a really

good process, you don't bring it to, oh I'm going to promise an outcome.

The manifestation in the markets of overconfidence is people trading too much.

People make way more decisions than they should make because they think their decisions are

good.

That's the deadly niff of overconfidence is making decisions you don't need to make.

You can find the undoing project everywhere you find books and it was written by Michael

Lewis, so you know it's good.

I'm Chris Hill, thanks for listening, we'll see you next time.

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