Motley Fool Money: 08.13.2010
Motley Fool Hidden Gems Investing
The Motley Fool
4.3 • 3.1K Ratings
🗓️ 13 August 2010
⏱️ 39 minutes
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| 0:00.0 | Everybody needs money. That's why they call it money. |
| 0:08.0 | From full global headquarters, this is Motley Full Money. |
| 0:19.0 | Welcome to Motley Full Money, I'm Chris Hill. |
| 0:21.0 | You know, each week here on Motley Full Money, we dig into the numbers of business as we analyze the latest headlines and the stocks that are on our radar. |
| 0:29.0 | But Warren Buffett, the greatest investor in modern times, has said the most difficult thing he had to master as an investor was not numbers or analysis. |
| 0:38.0 | It was his temperament. |
| 0:40.0 | So this week we've got a special edition of Motley Full Money on Tap, three of our favorite interviews all dealing with investment behavior. |
| 0:48.0 | We've got Christopher Shabrie, author of the Invisible Gorilla, Dan Arieli on the upside of irrationality. |
| 0:55.0 | But we begin with best-selling writer Jonah Lehrer, the author of How We Decide. |
| 1:00.0 | So the book is organized around two questions. |
| 1:05.0 | How does the human mind make decisions and how can we make those decisions better? |
| 1:11.0 | Let's just start with the first one. How do we decide? |
| 1:15.0 | Well, it turns out the brain has two basic ways to make decisions. |
| 1:19.0 | On the one hand, we all know we can be rational. Sometimes we can be deliberate. We can crunch the numbers. |
| 1:24.0 | We can read the Wall Street Journal. We can, you know, make a long list of pros and cons. |
| 1:29.0 | So that's one way to make a decision. That turns out to rely on a part of the brain called the prefrontal cortex. |
| 1:36.0 | It's that nub of flesh just behind your forehead. |
| 1:39.0 | But we also know that we can use our emotions. We can trust our instincts. |
| 1:43.0 | We can not think at all and still make decisions. Just go with what feels best. |
| 1:47.0 | And that relies on a whole different system in the brain. |
| 1:50.0 | So those are the two basic ways we make decisions. |
| 1:53.0 | And it turns out when you look at the brain and look at all these experimental recent decades, |
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