I recently visited with a 27 year old who asked me for help in figuring out what to do with his life. He is about to start at a prestigious graduate school and is feeling pressure to make some big career decisions quickly. Here’s the letter I wrote him, inspired by Seneca’s Letters from a Stoic. Before you … Read more
Our decisions, and the actions they lead to, make us who we are. In that sense, decisions are fundamental to our identities, our humanity and even the future of our planet. But what is a good decision and how do we get great at making them? I want to share with you my answers to … Read more
Group Decision-Making is Really Hard Whom should we hire, promote or fire? Who should we put on this proposal writing team and what should we propose? I’ve made or participated in such group decisions hundreds of times and I’ve never felt confident in the process or the outcome. Did we come up with the right … Read more
Here’s a question that just about everyone approaching (and passing) middle age will feel ambivalent about: how does getting older affect our ability to make rational decisions? On the one hand, it’s common knowledge that our cognitive abilities begin to decline in our fifties. On the other, as I’ve written before, the accumulation of experience … Read more
How do men and women approach decision-making differently? An evidence-based answer to this question is important: If we want to make better personal, policy and business decisions, the tools and strategies we use will depend on our strengths and weaknesses, which may be correlated with gender. If we want to help others, we need to … Read more
I took my annual look at my investments this week, and boy did I get it wrong. A few years ago, I determined I should have about 70% of my investments in equities. Instead, as of yesterday, I had less than 60%. Most of the excess was in cash, earning essentially nothing and missing out on … Read more
I’ve got a wickedly complex decision to make. What should my priorities be now that I no longer have a full-time banking job? I’ve got at least a dozen different alternatives, each with subtle-to-obvious differences with respect to my key values including impact on my family, benefit to society, intellectual challenge, financial security and leverage of … Read more
There are three things we need to make wise and rational decisions with confidence: time, information and smarts. Unfortunately, as mere humans, we know that these resources are in short supply. Indeed, the vast range of choices we have to make daily and the overwhelming influx of information and stimuli can limit or confuse all … Read more
Cognitive biases, prejudices and short-cuts, are bad, right? Anything that gets in the way of making rational decisions necessarily reduces our welfare. Our natural inclination towards the current moment, aversion to loss, inattention and procrastination leads many of us to under-save for retirement, with potentially disastrous consequences for ourselves and society. Do these self-sabotaging biases … Read more