The D in DIE
Diversification is a standard tool to reduce portfolio risk in finance. To do this, the portfolio manager seeks stocks with different risk profiles and potentially even industries and countries. But the managers do not just pick any old stocks. The…
Part 3a – Cognitive 101
Part 3a – Cognitive 101 This is a long, technical piece to provide some background on cognitive issues discussed in the series. It skims the surface of many key issues but provides an extensive bibliography for even more in-depth research…
Critical Thinking: Decisions and System1 System2 Thinking
Figure 1 Integrated System 1 and System 2 Approach Daniel Kahneman identified System 1 and System 2 as two different ways to think through issues and solve problems. System 1 is quick and intuitive. System 2 is slower and…
