#2 Value drives our lives! Your brains response to value & how it affects our investing lives
Description
Value runs deeply within your brain. The brain’s reward systems respond to primary incentives, but the story does not end there. People amplify the value of objects and experiences to a dramatic degree through our shared perceptions. Investing is guided by both ground truth value and our extended mental models of the situation. The social narrative can amplify value, as is the case of Warren Buffet’s signed ukulele selling for upwards of $10,000. Human perception drives the value of art, memories, family, and even preserving your DNA. The value placed on earning more money can be prolific, for example many star investors have much more money than they could ever need, yet the pervasive drive to acquire more leads to the very very hungry man with the very small mouth, that can never get enough. We want more and we can be envious of others. Values drive humans to become highly motivated primates! https://www.mentalmodelspodcast.com/