Managing our blindspots to make better investment decisions

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Biases affect everyone, but accepting that we are all susceptible is the start of not letting them drive our decisions

amounting to tens of thousands of dollars. The reports highlighted the fact that these items were not disclosed, nor did the justices recuse themselves from the court cases that involved these billionaires. When questioned, the justices suggested they didn’t believe these items had to be disclosed and that, in any case, they did not influence their legal decisions.

This isn’t a criticism of physicians or judges – or any profession, for that matter. It is simply a fact that we all face conflicts of interest every day. The key point is that we are not even aware of our biases. For instance, in anindividuals had to perform a task with another individual and then were given pay to divide between the two.

Advisers, in turn, also need to be aware of their own biases. Again, in most cases, the biases are not deliberate or borne out of bad intentions. For example, Canadian

 

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