Michael Mauboussin, author of More Than You Know: Finding Financial Wisdom in Unconventional Places (Updated and Expanded), was recently featured on Big Think.
In the interview, Mauboussin, who is also the Chief Investment Strategist at Legg Mason Capital Management, argues that humans are hard-wired to make bad investment decisions. We tend to follow trends and we should always relying on the “inside view,” which tends to be too optimistic about our futures. Instead, we should look for the outside view to dampen any optimism that might have been unduly generated.
Mauboussin also looks at the impact of the media on our investment decisions as well as considering whether or not the financial crisis has made us more risk averse. Here’s the interview: