Improving Alpha: Gerd Gigerenzer’s Case for Heuristics in Investing

Episode notes

Albert Einstein is often quoted as stating, “The intuitive mind is a sacred gift and the rational mind is a faithful servant.” As a society today, in this unstable world, you need both to accelerate success while avoiding defensive decision-making. Instead of taking up that defensive position, have the courage to go with more robust yet easier strategies blending data and intuition together. There’s no better guest to help us navigate the field of heuristics and how institutional investors can apply psychology today than Gerd Gigerenzer , Director Emeritus, Max Planck Institute for Human Development . In this latest Improving Alpha discussion, Gerd tells us why he gave up his life as a musician and chased his dreams in the field of academia, eventually writing several books, such as: Gut Feelings: The Intelligence of the Unconscious Risk Savvy: How to Make Good Decisions Simple Heuristics That Make Us Smart How to Stay Smart in a Smart World Calculated Risks: How to Know When Numbers Deceive You Additional discussion points in this podcast include: What is the purpose of the Max Planck Institutes around the world, and how can they impact the lives of those in the financial space?

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