question_answer ANECDOTE The Car Accident ios_share
Gabe was driving and followed all the rules, yet still got into an accident.
This demonstrates a bad outcome doesn't equal a bad decision.
play_arrow Listen from 01:39 Save
insights INSIGHT Judging Decisions ios_share
People tend to blame the decision-maker when they don't understand the decision.
In contrast, when we understand a bad outcome, we attribute it to bad luck.
play_arrow Listen from 02:49 Save
insights INSIGHT Resulting ios_share
"Resulting" describes judging decisions based on their outcomes, especially when uncertainty is high.
The quality of an outcome is often poorly correlated with the quality of the preceding decision.
play_arrow Listen from 03:50 Save
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Get the app How do we learn from situations where there are other forces at play? Former professional poker player and author Annie Duke looks at decisions when the outcomes are beyond our control, and AQR’s Toby Moskowitz delves into who is on the other side in factor investing.
This podcast was recorded on October 2, 2019.
The views expressed in this recording are the personal views of the participants as of the date indicated and do not necessarily reflect the views of AQR itself. AQR and its affiliates may have positions (long or short) or engage in securities transactions that are not consistent with the information and views expressed in this presentation. This recording has been prepared solely for informational purposes. Nothing contained in this [recording][podcast] constitutes investment, legal, tax or other advice, and it should not be viewed as a current or past recommendation or a solicitation of an offer to buy or sell any securities or to adopt any investment strategy. Past performance is no guarantee of future results. There can be no assurance that any investment strategy will be successful. The investment strategies and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation. The information in this recording is based on current market conditions, which will fluctuate and may be superseded by subsequent market events or for other reasons. AQR does not assume any duty to update forward looking statements. The information in this recording has been developed internally and/or obtained from sources believed to be reliable; however, no representation or warranty, express or implied, is made or given by or on behalf of AQR as to the accuracy and completeness or fairness of the information contained in this recording. Any liability as a result of this recording (including any direct, indirect, special or consequential loss or damage) is expressly disclaimed. ©2019 AQR Capital Management, LLC. All rights reserved.
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