Mental Models Podcast It's not a brain in a jar, that's the gist!

Mental Models: Motivations That Drive You - Our Basic Human Values Part 1: #47

Our basic human values drive us. In this episode we discuss values in detail from both an investing and psychological perspective. Our mental models of other people’s behavior and our own can helps us to predict steps management might take in a company that we are considering purchasing. We discuss a variety of the basic human values outlined by Schwartz. Note that these have been examined across numerous cultures. All cultures show evidence of these values, but they are expressed somewhat uniquely- just like individuals. We have all of these values available in our psychology, but we emphasize some more than others in our daily lives and over the course of our human development. We talk conservatism, openness to change, benevolence, universalism, achievement, and power. We discuss how these values are embedded and carried out within the networks of our brain. The pie chart of basic human values theory by Shalom Schwartz, will help you navigate Episode #47: "Mental Models: Motivations That Drive You". Listen here on the Mental Models Podcast website: https://www.mentalmodelspodcast.com/post/motivations-that-drive-you-basic-human-values-47. Don’t miss Part 2 of Mental Models: Motivations That Drive You: Basic Human Values-Part 2 where we provide applied examples of the investing world. We also encourage you to review Mental Models Podcast Episode #2 "Value Drives our Lives! Your Brains Response to Value and Investing" which is a similar but different perspective on the human value system and its relationship to our brain; listen on Apple Podcast https://podcasts.apple.com/us/podcast/value-drives-our-lives-your-brains-response-to-value/id1458795155?i=1000434905197 or SoundCloud https://soundcloud.com/user-682136294/2-value-drives-our-lives-your-brains-response-to-value-how-it-affects-our-investing-lives …Buy…our BOOK “Understanding Behavioral Bia$” to learn more about overcoming biases that are keeping you from investment success! http://amzn.to/2XHtsOE Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. #mentalModels #MentalModelsPodcast #UnderstandingBehavioralBias #Bias #DecisionMaking

Mental Models: Impulse Control and Investment Decisions: #46

Do you have the will power to keep from buying that stock too early? Humans need the will power to delay gratification - how do we get it? Discipline is important to success. Walter Mischel’s, research which is commonly called the “Marshmallow Test” with preschoolers and self-control provides great insight. Video of Marshmallow Experiment https://youtu.be/Rwxf1BTyKz4. Although, discipline is the key, such as waiting to buy or sell that stock at the perfect moment. Some of the toddlers in the Marshmallow experiment who ate the Marshmallow right away, went on to have metoric careers. What is most important is getting the timing correct and having a plan. Another tip with self control, is being aware of the environment and having a diversity of skills, which helps with avoiding groupthink biases. Listen to Mental Models Podcast #’s 3 & 4 on GroupThink. We can use nudges towards our passion and healthier options. See the book “Nudge” by Thaler & Sunstein for tips and successful outcomes: https://amzn.to/2Q4Uihd …Buy…“Understanding Behavioral Bia$” to learn more about overcoming biases that are keeping you from investment success! http://amzn.to/2XHtsOE Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. #mentalModels VIDEO of Dr. Daniel Krawczyk on Fox4News discussing new book “Understanding Behavioral Bia$" https://www.fox4news.com/video/655696q

Mental Models: Keys to Flexible Thinking and Problem Solving: #45

The keys to flexible thinking come from exploring the different solutions to a problem vs. exploiting the rewards, resulting in perseveration behavior. In this episode we explore the ‘set effect’ which is linked to problem solving. An example of successful flexible thinking and over coming the ‘set effect’ is when Warren Buffet realized that investing had changed and it was time to find a new approach and move away from Net-Nets, which he had learned from his mentor Benjamin Graham. Investing tips include discipline, awareness too changes and sticking to the circle of competence. See Chapter 8 in our book “Understanding Behaviorally Bia$” to learn more about these 3 tips, as well as post-moretems and deep analysis. http://amzn.to/2XHtsOE Chess experts such as the chess masters at the University of Texas at Dallas (UTD) are experts and can utilize flexible thinking and overcome the “set effect.” As we become experts in a field, such as investing we can become more flexible thinkers. Research by Dr. Daniel Krawczyk on chess experts. https://www.utdallas.edu/reasoninglab/research/expertise-and-cognition/ UTD chess team: https://www.utdallas.edu/chess/chess-team/ “Understanding Behavioral Bia$” will help you overcome the biases that are keeping you from investment success! http://amzn.to/2XHtsOE Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. #mentalModels VIDEO of Dr. Daniel Krawczyk on Fox4News discussing new book “Understanding Behavioral Bia$" https://www.fox4news.com/video/655696

Mental Models: Use Chunking to Conquer Memory Limitations: #44

In this episode we consider how our memory systems are organized and what we can do to help become better at remembering in a variety of areas of our lives. We consider memory from a multiple memory systems approach focusing on working memory- our short-term store. Working memory has a clear limit and we can use a “chunking” strategy to group items together allowing us to remember more. We discuss the extreme versions of this tactic described by expertise researcher K. Anders Ericsson and his book “Peak” https://www.amazon.com/Peak-Secrets-New-Science-Expertise/dp/1531864880 We also discuss how you can employ tips to maximize your memory performance in the context of work and investing. We touch on a variety of other factors that may also impact your working memory. - BUY “Understanding Behavioral BIA$” http://amzn.to/2XHtsOE This book will help you overcome the biases that are keeping you from investment success! Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. #mentalModels VIDEO of Dr. Daniel Krawczyk on Fox4News “Understanding Behavioral Bia$" https://www.fox4news.com/video/655696

Mental Models: Selection Bias - Where’s Waldo?: #43

Selection Bias can keep us hunting for what is most present on our mind, Waldo or the new Toyota we are planning to buy. Once we have committed to a decision we will see that specific brand everywhere. We are experiencing selection bias. Our brain is guiding us to what is most present on our minds. “The Invisible Gorilla” book by C. Chabris and D. Simons explores this famous experiment on how your mind actually works - our intuition can deceive us. https://www.amazon.com/Invisible-Gorilla-Other-Intuitions-Deceive-ebook/dp/B0036S4EYQ - BUY BOOK “Understanding Behavioral BIA$” http://amzn.to/2XHtsOE | by hosts of Mental Models Podcast: Dr. Daniel Krawczyk & George Baxter, JD, CFA. Behavioral finance advice and solutions. The sales of the book support the Mental Models Podcast directly! Positive reviews on Amazon increase the likelihood that others will become aware if the book “Understanding Behavioral Bia$”. VIDEO of "Understanding Behavioral Bia$" https://www.fox4news.com/video/655696 This book will help you overcome the biases that are keeping you from investment success! Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. Published by Business Expert Press Behavioral Finance Book AVAILABLE NOW ON AMAZON http://amzn.to/2XHtsOE Do you want strategies to make better financial decisions? Do you need a translational guide to Thinking Fast and Slow? Do you want to be a better investor and earn more money? If you said yes to any or all of the above questions then this book is for you! #UnderstandingBehavioralBias. #mentalModels