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Masters in Business

William J. Bernstein on Crowd Behavior (Podcast)

Masters in Business

Bloomberg

Business, Entrepreneurship, Investing

4.42.2K Ratings

🗓️ 5 March 2021

⏱️ 64 minutes

🧾️ Download transcript

Summary

Bloomberg Opinion columnist Barry Ritholtz speaks with the financial theorist and retired neurologist William J. Bernstein, who co-founded the investment management firm Efficient Frontier Advisors and has written several books on finance and economic history. His titles include “The Birth of Plenty: How the Prosperity of the Modern World Was Created,” “A Splendid Exchange: How Trade Shaped the World,” and “Masters of the Word: How Media Shaped History.” He was also the 2017 winner of the James R. Vertin Award from CFA Institute. His latest book is “The Delusions of Crowds: Why People Go Mad in Groups.”

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Transcript

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0:00.0

This is Mesters in Business with Barry Reynolds on Bloomberg Radio.

0:08.3

This week on the podcast, what can I say?

0:11.2

Bill Bernstein is a brilliant, author, neurologist, financial theorist, investor.

0:18.0

His most recent book, The Delusion of Crowds, Why People Go Man in Groups, is going to be

0:23.7

one of those must read books in the pantheon of both bubbles and behavioral finance.

0:30.8

He's written so many books, both a plenty, investors, asset allocator, four pillars of investing.

0:39.5

Just too many to mention, I find Bill to be one of those really unique people who has

0:46.4

a number of insights into the world of investing, partly because he's a neurologist and really

0:55.2

spent a lot of time learning how people's brains function and what drives us in our decision-making

1:03.1

process.

1:04.6

But just as important, he's a historian and a deep researcher and author.

1:11.2

And so not only does he understand the neurology and the cognitive science of our brains, but

1:18.3

he is very familiar with all of the academic literature and all of the actual history of

1:24.1

what's taken place over the past, pick a timeframe, 500, 2000, 2000 years.

1:31.0

And so all of his work is always a deep dive.

1:35.4

Every page is filled with so much fascinating information.

1:38.8

I'm really enjoying Delusions of Crowds.

1:41.4

About halfway through it.

1:43.3

All of his books are absolutely essential reading to me.

1:47.2

So if you are at all interested in anything from cognitive theory, behavioral finance,

1:55.4

investing, anthropology, bubble behavior, Bitcoin, Tesla, you name it, you're going to find

2:02.8

this to be just a fascinating dive.

...

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