BA18 Takeaways

THANK YOU FOR BEING A PART OF BA18

We had a really positive response from so many of you, and have already started to incorporate your feedback into planning next year’s exciting event. 

Collected below are the poll and survey responses you provided during the main speaker sessions. There are some great insights here.

If you have any other comments about the day, including topics you’d like to see discussed at BA19, please don’t hesitate to contact us at info@behavioralalpha.com.

Your survey comments and poll results by speaker: 

Maria Konnikova

What Investors Can Learn from Con Artists
– Dr. Maria Konnikova, Author of Mastermind and The Confidence Game

KEY TAKEAWAYS:

  • Have an exit strategy at inception
  • When we are emotional, we are not rational
  • Objectivity and patience
  • Self awareness and the optimistic bias
  • Be an educated consumer and a discerning listener
  • Analyze the situation as a fly on the wall
  • Know yourself take a break
  • Stories are dangerous
  • Con artists are smart
  • Step away and view your decisions as another person
  • Distance from decision
  • Data driven and thoughtful
  • Cool the hot stimulus
  • Be disciplined in your decision-making process
  • Know yourself, take your time, take a step back
  • We are all subject to being conned and need to be vigilant
  • You need to self reflect and acknowledge you can be wrong
  • Scenario plan before you dive in!
  • Story tellers will make you feel good. Tailored to you no matter your level of cynicism
  • Verify before trust
  • Take time to cool a Hot reaction
  • Not responding impulsively, taking time before acting
  • Be a fly on the ceiling
  • Con needs malicious intent
  • Life is stories, sometimes they are cons, watch out
  • Always have an exit strategy
  • Self awareness
Chris Woodcock - Essentia Analytics

How Investor Behavior Changes with P&L
– Chris Woodcock, Head of Product and Research at Essentia Analytics

KEY TAKEAWAYS:

  • The more self-awareness, the less mistakes
  • PMs change behavior when on a streak
  • Don’t look at short-term performance
  • Use systems to manage behavior and mitigate emotional interference

Do you think your investment behavior changes when you are on a 5-day winning streak?

Probably 76%
Probably not 24%

Do you think your investment behavior changes when you have been on a 5-day losing streak?

Probably 69%
Probably not 31%
Henry Timms

How New Power is Changing Who Wins and Who Loses in Business
– Henry Timms, social movement pioneer and co-author of New Power

KEY TAKEAWAYS:

  • The system that is the meta game for the game
  • Engagement is the future power
  • Consolidation between new and old powers
  • The need to evolve democracy to a participatory
  • The power of the consumer, who is no more a mere consumer
  • Democracy needs to get better at creating feedback loops
  • Boatymcboterson funny!!!
  • Kids these days…
  • The 4 criteria on how and when to use new power is great
  • I would like to figure out how to make the people we work with motivated to move our cause
  • Liberals don’t respect cognitive diversity
  • Purpose
  • It’s hard to keep up with the changes. What to do?
  • The world is changing
  • It’s not one type of power vs the other. It’s tactfully using both and knowing WHEN to use each type
  • Applications of this apply far beyond work
  • Don’t ask the crowd if you don’t value their opinion
  • It’s all about participation
  • Innovate or die
  • Understanding the interplay between new power and old power and how to know when to use each
  • The examples of old versus new were powerful
  • Success in this age is about simple branding
  • Product + purpose x participation
  • Don’t crowdsource baby names
  • The power of the crowd!
  • Popularity matters more than ever
  • Facebook is a scam
  • The system that is the meta game for the game
Anastasia Buyalskaya

Give Your Investment Team a Behavioral Tune-Up
– Anastasia Buyalskaya, Behavioral Scientist and Asset Management Changemaker

KEY TAKEAWAYS:

  • Listen to your team
  • A useful form of parsing organizations and how they function
  • Human physiology and performance are untapped area of data in search for alpha
  • Checking hormone levels to gauge trading decisions
  • Diversity of thought is important
  • The future of behavioral investing
  • The ABCDE vs ABEF vs CDEG
  • Cognitive diversity more important
  • Don’t run from yourselves. Discover each other
  • Like the cognitive diversity
  • Diversity means a lot of things
  • I love neuroecon
  • Reflecting on team dynamics is critical to generate alpha
  • Cognitive diversity is very interesting
  • Cognitive diversity is an underestimated source of Alpha
  • Diversity is not always the available characteristics
  • We have to hire her
  • Cut out vague verbiage and focus on probabilities
  • Cyber teams on the way
  • We’ve implemented most of the ideas she presented
  • Diversity is good
  • Sealed opinions are a useful tool
  • Best presentation all day. Cognitive diversity
  • Need to go for a brain scan!

To what extent do you agree with the following statement? : “I am actively aware of the cognitive blind spots which exist across members of my investment team and we have processes in place to debias our group decision making.”

Yes, definitely 19%
Sort of 67%
Nope 14%

“Our investment team meetings are highly effective: investors share relevant information, positions are discussed for the appropriate amount of time, and we actively debate one another to avoid confirmation bias on our positioning.”

Yes, definitely 38%
Sort of 41%
Nope 21%

“When an investment decision is made, everyone has a clear understanding of how their views were considered and weighed in the decision process; investors are held accountable for the decisions to which they contributed.”

Yes, definitely 23%
Sort of 35%
Nope 42%

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