The other F word

Thinking and talking about failure can be tough, especially when it’s us who’s failing.  But it’s important for us as individuals and investment teams to find a way to do this in an effective manner that allows us to both learn and evolve. In this episode of Decisions Nerds… 

- Joe pits his inner Brian Blessed against an AI auto-editor 

- We examine Joe’s framework for thinking about errors around investment beliefs, processes and outcomes.

- We then think about this in the context of broader research that thinks about different typologies of errors; basic, complex and intelligent. 

- We then discuss the practical steps that can make life easier. 

Chapters

• 0:00 Cultural Joe vs the autoeditor
• 1:15 Why talking about failure is important
• 1:50 Joe's framework
• 4:05 Belief errors
• 6:23 Changing beliefs - practical examples
• 9:14 Process errors
• 12:05 What stops us talking about behavioural problems
• 14:25 Blaming others - a real life example feauting Joe's Teams' notications
• 16:45 Outcome mistakes
• 17:14 The pain of being an active investor
• 19:15 Loss aversion and setting expectations
• 20:30 Basic, complex and intelligent failures
• 23:45 Complex failure in investment management
• 25:59 Why we find it hard to talk about failure; confusion, aversion and fear
• 32:35 Building Psychological Safety starting from zero
• 34:31 If you could only do one thing....