"All components of the human body are optimized for the ancestral environment of millennia ago. This has implications in most areas of science - Economist Arthur De Vany writes about how it affects our ideal diet and fitness regimens on his Evolutionary Fitness blog.
Michael Mauboussin's book Think Twice: Harnessing the Power of Counterintuition explores the implications with regard to decision-making - particularly investment decisions. The thesis of the book is that 'smart people make poor decisions because they have the same factory settings on their mental software as the rest of us, and that mental software isn't designed to cope with many of today's problems.' Think stone age era settings. But it's possible to think carefully (twice) and adjust for these shortcomings."
Monday, November 2, 2009
Michael Mauboussin's Think Twice: Harnessing the Power of Counterintuition Is Short but Sweet -- Seeking Alpha:
Posted by Mother of All Carry Trades at 10:24 AM