These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 3, 2017. This seminar covers behavioral finance & financial decision making.
Stanford CS 007-06: Personal Finance for Engineers / All About DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 31, 2017. This seminar covers compounding, debt, credit scores, amortization & strategies to pay off debt.
Stanford CS 007-01: Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 26, 2017. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-05 (2019): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-2 (2018): Personal Finance for Engineers / CompensationAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
Stanford CS 007-01 (2021): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 21, 2021. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-06 (2020): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-08 (2021): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 16, 2021. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-06: Personal Finance for Engineers / All About DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 31, 2017. This seminar covers compounding, debt, credit scores, amortization & strategies to pay off debt.
Stanford CS 007-01: Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 26, 2017. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-05 (2019): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-2 (2018): Personal Finance for Engineers / CompensationAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
Stanford CS 007-01 (2021): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 21, 2021. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-06 (2020): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-08 (2021): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 16, 2021. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-04 (2021): Personal Finance for Engineers / Savings & BudgetsAdam Nash
These are the slides from the 4th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 12, 2021. This seminar covers savings rates, income & expenses & budgeting.
Stanford CS 007-08 (2018): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 13, 2018. This seminar covers financial planning, financial goals, couples & life insurance.
Personal Finance for Engineering (Pinterest, 2014)Adam Nash
This is the version of Personal Finance for Engineers, covering behavioral finance, liquidity, savings, compounding, and long term investing. It was given at Pinterest HQ in San Francisco on Jan 23, 2014.
Stanford CS 007-08: Personal Finance for Engineers / Financial Planning & GoalsAdam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-10 (2020): Personal Finance for Engineers / Additional Topics...Adam Nash
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-01 (2019): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 23, 2019. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-03: Personal Finance for Engineers / Getting PaidAdam Nash
These are the slides from the 3rd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 10, 2017. This seminar covers compensation, equity & comparing offers.
Stanford CS 007-06 (2021): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" on October 26, 2021. This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-2 (2020): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 22, 2020. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-07 (2018): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on November 6, 2018. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-09 (2020): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-05 (2018): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-07 (2020): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 27, 2020. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Personal Finance for Engineers (Stanford, 2018)Adam Nash
This is the version of my talk, Personal Finance for Engineers, given as a guest lecture at Stanford University on Feb 7, 2018 for the class Psych 102.
Stanford CS 007-01 (2020): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 15, 2020. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-08 (2019): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2019. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-09 (2019): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2019. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-02 (2022): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on October 4, 2022. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-2 (2021): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 28, 2021. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-04 (2021): Personal Finance for Engineers / Savings & BudgetsAdam Nash
These are the slides from the 4th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 12, 2021. This seminar covers savings rates, income & expenses & budgeting.
Stanford CS 007-08 (2018): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 13, 2018. This seminar covers financial planning, financial goals, couples & life insurance.
Personal Finance for Engineering (Pinterest, 2014)Adam Nash
This is the version of Personal Finance for Engineers, covering behavioral finance, liquidity, savings, compounding, and long term investing. It was given at Pinterest HQ in San Francisco on Jan 23, 2014.
Stanford CS 007-08: Personal Finance for Engineers / Financial Planning & GoalsAdam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-10 (2020): Personal Finance for Engineers / Additional Topics...Adam Nash
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-01 (2019): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 23, 2019. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-03: Personal Finance for Engineers / Getting PaidAdam Nash
These are the slides from the 3rd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 10, 2017. This seminar covers compensation, equity & comparing offers.
Stanford CS 007-06 (2021): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" on October 26, 2021. This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-2 (2020): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 22, 2020. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-07 (2018): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on November 6, 2018. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-09 (2020): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2020. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-05 (2018): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-07 (2020): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 27, 2020. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Personal Finance for Engineers (Stanford, 2018)Adam Nash
This is the version of my talk, Personal Finance for Engineers, given as a guest lecture at Stanford University on Feb 7, 2018 for the class Psych 102.
Stanford CS 007-01 (2020): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 15, 2020. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-08 (2019): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2019. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-09 (2019): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in November 2019. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-02 (2022): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on October 4, 2022. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-2 (2021): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers," given on September 28, 2021. This seminar covers the topic of Behavioral Finance.
Stanford CS 007-2 (2019): Personal Finance for Engineers / Behavioral FinanceAdam Nash
These are the slides from the 2nd session of the Stanford University class, CS 007 "Personal Finance for Engineers". This seminar covers the topic of Behavioral Finance.
Basics of behavioral economics, biases and methods of decision architectures. This presentation is the short version and does not include the videos and images of the experiments and real life examples.
This lecture is part of a business law course focused on ethics and leadership. This is the student's first introduction to implicit bias and heuristics.
Stanford CS 007-03 (2022): Personal Finance for Engineers / CompensationAdam Nash
These are the slides from the 3rd session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on October 11, 2022. This seminar covers compensation, equity & comparing offers.
Stanford CS 007-01 (2022): Personal Finance for Engineers / IntroductionAdam Nash
These are the slides from the 1st session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on September 27, 2022. This seminar covers a survey of the students enrolled in the course, with an overview of the topics to be covered over the course of the series.
Stanford CS 007-10 (2021): Personal Finance for Engineers / Additional Topics...Adam Nash
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on December 7, 2021. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-09 (2021): Personal Finance for Engineers / Real EstateAdam Nash
These are the slides from the 9th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 30, 2021. This seminar covers real estate and related financial decisions: buying, renting, rent vs. buy, real estate investment, rental properties & tax advantages.
Stanford CS 007-07 (2021): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given on November 9, 2021. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-05 (2021): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" taught on October 19, 2021. This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-08 (2020): Personal Finance for Engineers / Financial Plannin...Adam Nash
These are the slides from the 8th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered on November 3, 2020. This seminar covers financial planning, financial goals, couples & life insurance.
Stanford CS 007-05 (2020): Personal Finance for Engineers / Assets & Net WorthAdam Nash
These are the slides from the 5th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on liquidity, emergency funds, assets & liabilities, and net worth.
Stanford CS 007-10 (2019): Personal Finance for Engineers / Additional TopicsAdam Nash
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" offered in December 2019. This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
Stanford CS 007-07 (2019): Personal Finance for Engineers / InvestingAdam Nash
These are the slides from the 7th session of the Stanford University class, CS 007 "Personal Finance for Engineers" given in November 2019. This seminar covers compounding, types of investments, diversification, how to invest, and the four keys to good investing (all boring).
Stanford CS 007-06 (2019): Personal Finance for Engineers / DebtAdam Nash
These are the slides from the 6th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar focuses on compounding, mortgages, auto loans, student loans, credit cards and credit scores.
Stanford CS 007-10 (2018): Personal Finance for Engineers / Additional TopicsAdam Nash
These are the slides from the 10th session of the Stanford University class, CS 007 "Personal Finance for Engineers" This seminar covers student requested additional topics for the course, including bitcoin / cryptocurrency, derivatives, futures, options, private equity & venture capital.
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Exploring Abhay Bhutada’s Views After Poonawalla Fincorp’s Collaboration With...beulahfernandes8
The financial landscape in India has witnessed a significant development with the recent collaboration between Poonawalla Fincorp and IndusInd Bank.
The launch of the co-branded credit card, the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card, marks a major milestone for both entities.
This strategic move aims to redefine and elevate the banking experience for customers.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
4. YOU ARE NOT
RATIONAL
ANCHORING MENTAL ACCOUNTING CONFIRMATION &
HINDSIGHT BIAS
GAMBLER’S FALLACY
HERD BEHAVIOR OVERCONFIDENCE OVERREACTION &
AVAILABILITY BIAS
LOSS AVERSION
5. WHY BEHAVIORAL ECONOMICS?
• A number of economic frameworks
assume that humans evaluate
financial decisions consistently &
rationally
• Daniel Kahneman & Amos Tversky
(1960s)
• 2002 Nobel Memorial Prize in
Economic Sciences
• Prospect Theory
6. THREE THEMES IN BEHAVIORAL ECONOMICS
• Heuristics
Humans make a vast majority of
their decisions using mental
shortcuts or rules of thumb.
• Framing
Humans use anecdotes &
stereotypes to understand &
respond to events
• Market Inefficiencies
Mis-pricing or non-rational decision
making
7. ANCHORING
• People estimate answers to new &
novel problems with a bias towards
reference points
• Tversky & Kahneman (1974)
(quick multiplication)
• Dan Ariely
(social security numbers & prices)
• Common examples:
• Price you bought a stock at
• High point for a stock
8. MENTAL ACCOUNTING
• Money is fungible, but people put it
into separate “mental accounts”
• Also known as “bucketing”
• Example: Lost Movie Tickets
• Example: “Found Money”
• Real world problems:
Vacation Fund & Credit Card Debt
9. CONFIRMATION & HINDSIGHT BIAS
• Very different biases, but often conflated
with each other.
• Confirmation Bias
We selectively seek information that
supports pre-existing theories, and we
ignore / dispute information that
challenges or disproves them.
• Hindsight Bias
We overestimate our ability to predict the
future based on the “obviousness” of the
past.
• Combination of the two is particularly bad.
10. GAMBLER’S FALLACY
• We see patterns in independent,
random chains of events.
• We believe that, based on a series of
previous events, an outcome is more
likely than odds actually suggest.
• Example: Dinner Party & Coin Flips
• Real odds might be 51/49, but we tend
to jump to 80/20.
• Likely cause: the rarity of “independent
events” in day-to-day experience.
11. HERD BEHAVIOR
• We have a tendency to mimic the actions of
the larger group
• Example: Building Psych Experiment
• Example: Empty Supermarket
• Crowd psychology may be a contributor to
bubbles.
• Bucking the crowd creates stress & fatigue.
It gets harder, not easier.
• Easier to be “wrong with everyone” than
“right and alone”
• No gets fired for buying IBM?
12. OVERCONFIDENCE
• In one study, 74% of investment
managers believe they deliver above
average returns.
• Positively correlated with IQ.
• The smarter you are, the more likely it
is that you are a victim of this
particular bias.
• Humility is a virtue.
13. OVERREACTION & AVAILABILITY BIAS
• Overreation
We overreact to recent events
• Example: Celebrity Illness
• Availability Bias
We assume that the data we have been
provided is representative of the entire data
set.
• The combination is particularly bad.
• Studies show checking stock prices daily leads
to more trading & worse results on average.
• Worse for engineers, because we are immersed
in “game changers” & “it is different this time”
14. YOU HAVE $1,000 AND YOU MUST PICK
ONE OF THE FOLLOWING GAMES
You have a 100% chance of gaining $500.B
You have a 50% chance of gaining $1,000, and
a 50% chance of gaining $0.A
OR
15. NOW, YOU HAVE $2,000 AND YOU MUST
PICK ONE OF THE FOLLOWING GAMES
B
A
OR
You have a 50% chance of losing $1,000, and
a 50% chance of losing $0.
You have a 100% chance of losing $500.
16. LOSS AVERSION (PROSPECT THEORY)
• We hate losses more than we love
winning
• Average loss aversion across multiple
studies is between 2:1 and 3:1
• Affects our views on a wide range of
situations, including career decisions,
dating, purchasing, investing and taxes.
• We even hate being responsible for
decisions that could result in a loss
• Example: “Sunk Cost” mistakes with
investments
18. IT’S OK TO NOT BE RATIONAL
• As Dan Ariely beautifully put it, the
key is that humans are predictably
irrational
• Know your own flaws, and you can set
up systems to help account for them
• Self awareness is key
(yes, my Mom is a psychologist)
21. NEXT WEEK: GETTING PAID
• Compensation
• Different models & methods
• Public vs. Private Companies
• Stock Options vs. Restricted Stock
• Understanding Equity Compensation
• Taxes
22. HOMEWORK
• Look for an email with four different
compensation offers.
• Based on real data:
• Large public tech company
• Mid-sized private tech company
• Small startup
• Non-tech company
(banking / consulting)
• Submit your answers (via survey) on which
offer you would accept, and the rationale
for that decision.