Think Twice

In this summary you will learn

• Why even brilliant individuals can make poor decisions
• What some of the most common decision-making mistakes are
• How to avoid them

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Why you should read Think Twice

Research indicates that people buy more German wine when a store’s sound system plays German music in the background and more French wine when it plays French music. However, shoppers claim that the background music has no effect on their wine choices. Most people think that they make rational decisions, even if they do not. In this example, irrelevant, low-level sensory input determines people’s choices. Michael J. Mauboussin, a finance professor and investment strategist, wants to help people make better decisions. In his book, he details the most common decision-making mistakes and suggests practical techniques you can use to avoid them. getAbstract recommends this book to people who want to increase their awareness of their own irrationality and, especially, to managers in decision-making positions, whose mistakes may have ripple effects throughout their organizations and even beyond.

About the Author

Michael J. Mauboussin is the chief investment strategist for a capital management firm and teaches finance at Columbia Business School.