Capital Allocators – Inside the Institutional Investment Industry [REPLAY] Annie Duke - Improving Decision Making [Capital Allocators, EP.39]
Sep 14, 2020
Annie Duke, a former top poker player and decision strategist, shares her insights on the art of decision-making. She explores how cognitive psychology influences our choices and the concept of 'tilt' in high-pressure scenarios. Duke discusses the importance of understanding biases, emotional control, and accountability in both poker and investing. She delves into the idea of mental time travel, highlighting how our past and future selves influence decisions. Duke also shares parenting wisdom, emphasizing calm communication for better outcomes.
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Unexpected Poker Career
- Annie Duke's path to professional poker started unexpectedly.
- While on a break from her PhD in cognitive psychology, she began playing poker to earn money, a temporary job that turned into a 20-year career.
Decisions as Bets
- All decisions, big or small, are essentially bets about the future.
- Choosing between chicken and fish at a restaurant involves betting on a preferred future outcome.
Belief Formation
- Humans readily believe what they hear first and vet it later, a process prone to bias.
- This often leads to motivated reasoning, where evidence supporting prior beliefs is favored and contradicting evidence is disregarded.
