15 April 2020
We entrust groups to some of our most important decisions, particularly in finance and investment. And the conventional wisdom is that a group can moderate the decision-making biases of individuals. But do they? This week hosts Dan Mikulskis and Mary Spencer are joined by LCP's Zoe Burdo, and explore some of the many issues associated with “groupthink”.
- Confirmation bias
- Cascades Anchoring
- How some group members can become scape-goats
- We discuss some of the infamous failures of groups in history, like the Challenger disaster
- How groups can end up in a more extreme position, and more overconfident in it, than individuals themselves
- How does group size affect groupthink?
- How complexity and knowledge discrepancies in investment can really worsen groupthink.
- Do devil’s advocates really work?
- Don’t scapegoat a devil’s advocate.
Useful links referred to in our podcast this week
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Each LCP investment uncut podcast is for information and marketing purposes only and does not constitute any form of investment or financial advice or a financial promotion (under the Financial Services and Markets Act 2000). All views expressed by the podcast hosts and guests are purely their own opinions and do not represent those of LCP, its clients or affiliates. Our podcast listeners should always seek independent financial or legal advice before making any financial or investment decisions. Please refer to the Legal Notices section on the LCP website for further information.