Motley Fool Money Interview with Dan Ariely: Investing in the Irrational
Sep 14, 2025
Dan Ariely, a Professor of Behavioral Economics at Duke University and bestselling author, delves into human behavior's impact on investing. He shares fascinating insights on how emotions can skew financial decisions and emphasizes the importance of understanding intrinsic versus extrinsic motivation in business. Ariely recounts his personal journey sparking his interest in irrationality and discusses how sometimes irrational choices can lead to better long-term investments. This conversation offers a deep look into navigating the complexities of financial decision-making.
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Burn Injury Sparked Research Path
- Dan Ariely describes his severe burn injury and long hospitalization as the start of his interest in human behavior and improving outcomes.
- The experience taught him that good intentions often lack the right knowledge to help people effectively.
Emotions Undermine Long-Term Investing
- Emotions routinely derail good long-term financial decisions despite their value in other parts of life.
- Investing demands tools and structures because our evolved minds lack wiring for long-term tradeoffs.
Mind Is A Vintage Swiss Army Knife
- Ariely compares the mind to a vintage Swiss Army knife, useful broadly but not built for modern problems like compound interest.
- He argues we must build external tools to compensate for these cognitive gaps.
