Description
We take a deep dive into the benefits of thinking in groups and how our mental models change through group interactions. Team members can help us to flesh out our mental models in a variety of situations. Seeking multiple opinions can give you a wider perspective, but other people’s opinions can have an oversized effect on your thinking. Benjamin Graham spoke about the quality of your analysis making a big difference, but also that listening to groups can aid you to be a better investor. Psychologists call this process of understanding motivations of others “theory of mind”, or perspective taking. Trying to understand others’ mental models is important because others can be right, wrong, or even misleading. Interested in a master guide to winning the market? – listen in! Groupthink is a rich topic, relevant whenever we work in teams. Team work influences our financial decisions. Keep an eye out for Groupthink Part 2 focused on the specific risks and benefits of working with investment teams.