How Emotions Shape Business Decisions
We often let go of objectivity before we've secured a firm grip on reality—all because of something psychologists call the affect heuristic.
Mark Snape
With a Ph.D. in Finance and extensive experience, Mark brings unparalleled expertise to financial analysis and modeling. Through Anaeo, Mark offers free access to his latest analysis and models.
The Experience Paradox: When Pattern Recognition Leads Us Astray
What happens when that hard-earned experience becomes a liability? Let's explore when the very patterns that made us successful begin to lead us astray.
The Dangerous Comfort of Consensus: Why True Dissent Matters in Decision Making
It's often only after a decision proves disastrous that we discover the doubts and reservations that were swept under the carpet during the decision-making process.
Beyond the Halo: The Discipline of Seeing Through Success Stories
The disciplined investor maintains consistent standards regardless of who's in the room. After all, money doesn't know or care who lost it.
The Analogy Trap: When Past Investment Success Leads to Future Failures
The human mind's tendency to reason by analogy—reaching for the most recent or vivid example—is powerfully persuasive and persistently dangerous.
The Hidden Tax of Self-Interest: A Decision Maker's Guide to Systemic Bias
Every major corporate decision carries a hidden tax—the inevitable distortion of reality through the lens of self-interest.
The Bias Toward Action: When Investing is Worse Than Doing Nothing
Our compulsion to "do something"often leads us astray, especially when combined with overconfidence in our ability to shape the future.
Designing Investment Committees to Counter Cognitive Biases
Success lies not in eliminating cognitive biases—an impossible task—but in creating structures and processes that systematically identify and counter their effects.
The Power of Premortems: Preventing Investment Failures Before They Happen
It's better to be roughly right than precisely wrong. Premortems help us be roughly right more often by showing us where we might be precisely wrong.
The Hidden Chains of Past Decisions: How Sunk Cost Bias Derails Smart Decision Makers
Should you find yourself in a chronically leaking boat, energy devoted to changing vessels is likely to be more productive than energy devoted to patching leaks.