Capital Allocators – Inside the Institutional Investment Industry Annie Duke – How to Decide (Capital Allocators, EP.156)
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Sep 14, 2020 
In this engaging discussion, Annie Duke, a former professional poker player turned decision-making expert, shares insights from her new book, 'How to Decide.' She outlines a six-step framework for better choices and emphasizes the crucial balance between thoroughness and timeliness. Annie explores the power of negative thinking, warning against overconfidence, and the importance of navigating group dynamics to avoid groupthink. Her practical strategies aim to enhance decision quality while recognizing the emotional challenges that often cloud judgment.
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Happiness Test
- Evaluate decision impact using the "happiness test": assess long-term effects on goals.
- Low-impact decisions can tolerate shortcuts; high-impact decisions require more time.
Quituitiveness and Optionality
- Prioritize "quituitiveness" by favoring easily reversible decisions to reduce opportunity costs.
- Repeating decisions, low-impact choices, and parallel options allow for faster decision-making.
Goldilocks Point
- Find the "Goldilocks" point for information gathering: enough, but not too much.
- For close calls, consider if any information could definitively determine the best option.
