Opinion

What judging BBQ teaches you about investment heuristics

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Beef brisket or pulled pork? Yes, please.

By Beth Reed and Nicholas Colas

Be it BBQ judging, investing, picking out an outfit, or even choosing whether or not you’re going to show up for work tomorrow – there’s a decision making process occurring. Quite simply, decision making is the cognitive process resulting in the selection of a final choice among several alternative scenarios. Final choices can be opinions (as in “This brisket is an 8”) or actions (such as “I will invest in tech stocks”), and decisions are both conscious and unconscious. For investors, financial decisions and how we tend to arrive at them are of