A short YouTube transcript excerpt arguing that professional money managers often fail to beat market benchmarks because of bias and overconfidence in their stock-picking; the speaker advises reading Daniel Kahneman’s Thinking Fast and Slow to understand these cognitive errors. The tone is critical of managers’ self-justifications and emphasizes psychological causes rather than purely technical explanations.
And all that, excuse my language, is bullshit. The single reason why they think that portfolio of 2030 stocks, perhaps more, will outperform their benchmark is because they're. They're babies. They pick those stocks. And it's not necessarily hubris. It's that bias and overconfidence that I pick those stocks, so they have to outperform. And that's what people don't realize. Which brings me to another book that people should read. And. And that's called Thinking Fast and Slow by Daniel Kahneman, who has won a Nobel Prize with his partner Twersky, posthumously because he passed away before Nobel. Society recognized them both.
