AAII Investor Update: Kahneman on Decision-Making, and Other Morningstar Conference Notes

Nobel laureate and psychologist Daniel Kahneman shared insights from his current research about decision-making at this year’s Morningstar Investment Conference. He described noisy interferences in the decision-making process as being more important than systematic errors. Noise is something that interferes with the decision-making process, particularly irrelevant factors influencing a person’s judgments. Irrelevant factors can include…