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…

 

Two Ways to Build and Preserve Wealth

For all of the chatter coming out of the financial industry about building wealth, I continue to believe that two of the best methods for individual investors are process and automation. The likelihood of success is enhanced when a good process is put in place and automation is used when it is both reasonable and…