James Montier – Thinking About Thinking

by Mike Rawson · Published · Updated
Tags: Psychology
by Mike Rawson · Published July 16, 2018 · Last modified June 20, 2020
by Mike Rawson · Published May 13, 2019 · Last modified June 17, 2020
by Mike Rawson · Published November 6, 2017 · Last modified June 21, 2020
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When everything seems to be going against you, remember that the airplane takes off against the wind, not with it.
Very informative read! As you say, knowing what you are thinking and knowing why you might favor a certain decision are key to getting better at many tasks, including investing. Understanding heuristics will definitely help one make more rational decisions. But knowing about heuristics in a cold state is different than applying that knowledge in a hot, emotional state. This is where I think meditation, which leads to mindfulness, can help us recognize when we are acting emotionally and to our own disadvantage. I’ve devoted a whole website to mindful investing for just this reason.