- Economist | - 1
Ideas percolate. Through natural selection, the best ones survive.
Andrew Lo
BestIdeasSurviveThroughNatural
Most people are overconfident about their own abilities. That is probably a good thing. But we would be horrified if a physician's aide engaged in heart surgery.
GoodHeartPeoplePhysicianOwn
What makes this story so remarkable is that throughout my early childhood I had ongoing learning difficulties, particularly in mathematics. I struggled to learn the multiplication table, and no matter how hard I tried, I simply couldn't remember 6 times 7 or 7 times 8.
LearningMathematicsChildhoodStory
Maybe we should teach schoolchildren probability theory and investment risk management.
ManagementInvestmentTeachRisk
The adaptive markets hypothesis says that all economic institutions, like our own species, develop and change over time, depending on the population of investors that are engaged with them.
ChangeTimeOverOwnPopulation
While neurological studies have tried to identify components responsible for fear and greed, the impact on finance is less clear.
FearFinanceGreedImpactClear
I don't entirely reject the idea of efficient markets. It needs updating.
IdeaNeedsMarketsEfficientReject
During periods of extreme fear or greed, you don't have the proper balance between those two to generate market efficiency and you get extremes in behavior.
FearBalanceGreedBehaviorYouTwo
If you rank the top 50 one-day moves in the S&P 500, a fair number of those happened within the last five or 10 years. That tells you that we're in a different, riskier market now.
YouNowFairTopYearsWithin
If we are able to allow people to earn a decent rate of return, with sufficient scale, we can all do well by doing good.
GoodPeopleDoingDoing GoodEarn
Some people might say, 'Can we afford it?' I think that's asking the wrong question... We should instead be asking, 'Can we really afford not to try?'
PeopleThinkWrongSayTryAsking
It's important to understand how people perceive risk, and how that translates into investment behavior.
PeopleBehaviorInvestmentUnderstand
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