Capital Allocators – Inside the Institutional Investment Industry

In this engaging discussion, Annie Duke, a former professional poker player turned decision-making expert, shares insights from her new book, 'How to Decide.' She outlines a six-step framework for better choices and emphasizes the crucial balance between thoroughness and timeliness. Annie explores the power of negative thinking, warning against overconfidence, and the importance of navigating group dynamics to avoid groupthink. Her practical strategies aim to enhance decision quality while recognizing the emotional challenges that often cloud judgment.

Gary Klein, a pioneering cognitive psychologist, shares his expertise in naturalistic decision-making and the Pre-Mortem method. Joined by finance professors Paul Johnson and Paul Sonkin, they discuss how anticipating failures can enhance investment strategies. The trio delves into the efficacy of Pre-Mortem analysis, its origins in the Air Force, and its practical applications. They explore cognitive tools like ShadowBox and highlight the importance of psychological safety in team decision-making, emphasizing the value of diverse perspectives in risk assessment.

Annie Duke, a decision-making expert and former world-renowned poker player, dives into effective strategies for making informed choices. She discusses the importance of distinguishing valuable signals from noise, and how cognitive biases can cloud judgment. Annie shares practical insights on collaborative decision-making and Team dynamics, while also reflecting on her experiences as a woman in poker. With engaging anecdotes, she explores the parallels between poker and everyday decisions, offering listeners a fresh perspective on navigating uncertainty.

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.

Morgan Housel, a partner at Collaborative Fund and acclaimed finance writer, shares insights from his best-selling book, The Psychology of Money. He discusses the unique lessons learned from his non-traditional education and shares personal anecdotes about luck, risk, and the power of patience in investing. Housel also delves into the transformative nature of human behavior in finance, the challenges of navigating social media, and his inspiring journey overcoming stuttering. Tune in for a captivating blend of personal stories and financial wisdom!

Joel Wittenberg, Chief Investment Officer of the W.K. Kellogg Foundation, discusses critical issues of diversity, equity, and inclusion in the investment sector. He emphasizes the importance of open dialogues about race and shares insights on fostering racial equity within organizations. Wittenberg also explains his experiences in the bond market, focusing on capital allocation strategies. Additionally, he highlights the Foundation’s initiatives to support emerging managers and impact investments, all aimed at creating equitable opportunities for children and families.

Erin Shea, an insider at Jefferies and co-host of the Invisible Forces podcast, dives into the unseen dynamics reshaping the global economy. She explores how the pandemic has shifted consumer behavior, pushing demand for local sourcing over global supply chains. The conversation also highlights the surprising rise in puzzle popularity during crisis times and discusses innovative solutions emerging in the food and beverage industries. Shea emphasizes the necessity for leaders to adapt to these transformations and a future focused on localization.

Shundrawn Thomas, President of Northern Trust Asset Management, oversees a $900 billion organization and leads significant diversity initiatives. He shares personal insights from his career, tackling issues of race and unconscious bias in professional spaces. Shundrawn emphasizes the importance of mentorship and building diverse leadership teams, illustrating how inclusivity boosts organizational performance. He discusses the cultural values at Northern Trust that promote collaboration and how the current focus on diversity presents a pivotal opportunity for businesses to enact real change.

Kim Lew, Chief Investment Officer of Carnegie Corporation and a prominent voice in diversity and inclusion in investing, shares her inspiring journey. She discusses her experiences with bias in her early career and emphasizes the impact of diversity on investment team dynamics. Kim advocates for mentorship and networks to support underrepresented talent, while addressing the 'shrinking pie' mindset in diversity efforts. Her insights reveal how inclusive practices can lead to innovation and greater success in the investment industry.

Kim Lew, the Vice President and CIO of Carnegie Corporation, leads the charge in managing a $3.5 billion foundation. She shares the inspiring immigrant story of her father and how it shaped her values. Lew dives into her career path from dentistry to finance, emphasizing mentorship's impact. She discusses the balance of ambition and friendship in high-stakes environments. Notably, Lew reveals her commitment to long-term investment strategies and her adventurous spirit in celebrating turning 50 with 50 new activities, blending personal growth with professional insight.