Thread by @sohamdas

The guru of gurus, Sanjoy Bhattacharyya is up on podium and this is going to be one rollicking session #MAW @CFASocietyIndia

"The tragedy of behavioral finance, is there is no grand theory of equilibrium“, starts Mr. B

That's it, the gloves have come off! #MAW @CFASocietyIndia

The topic of his presentation?
"The rewards of good behavior:where theory, meets practice"

Nothing is original here, starts MrB. Majorly influenced by Mr. Crosby #MAW @CFASocietyIndia

What makes us tick?
Humans drive markets;
#MAW @CFASocietyIndia

Collaboration, Social Coherence- applying the findings and ideas of @harari_yuval to financial markets
#MAW @CFASocietyIndia

A call for rational incoherence, and dissent if you need to succeed, says Mr. B #MAW @CFASocietyIndia

Busting of myths by Mr. B
"Bhaav bhagwaan chhe"
"Large caps better than midcaps"

#MAW @CFASocietyIndia

Mr. B reminds audience of HindMotors and Premier #MAW @CFASocietyIndia

Primacy of brain in human body, the demand for energy vis a vis it's low weight, says Mr.B #MAW @CFASocietyIndia

"Hedonic Treadmill", Mr. B breaks down modern human behavior #MAW @CFASocietyIndia

"Ignoring economically best in favor of what is emotionally satisfying", Mr.B chastises about our behavior in financial markets.

@CFASocietyIndia #MAW

Stress increases propensity of irrational behavior, Mr B talks about our behavior #MAW @CFASocietyIndia

The Master is talking about HALT, our triggers of stress.
Hungry, Angry, Lonely and Tired #MAW @CFASocietyIndia

"You got to hold yourself to the mirror, when it comes to investments", Mr B chastises our collective conscience #MAW @CFASocietyIndia

"We talk about multibaggers, West talks about risk" #MAW @CFASocietyIndia

"In my vague memory when they invented it, it was called idiosyncratic risk", Mr.B humors and gently puts down the traditional pillars of finance #MAW @CFASocietyIndia

Business Risk and Behavioral Risk, points out Mr. B #MAW @CFASocietyIndia
And you can do much better if you control behavioral risk... Reminds Mr. B

"Learn to be comfortable, with who you are" @CFASocietyIndia #MAW

"You need someone to point out, disconfirming evidence" @CFASocietyIndia #MAW

Twitter, you should be thanking that I am tweeting and not, sitting back and enjoying Mr. B passionate, humorous, well meaning and fantastic articulate presentation.
Just Kidding. I will settle for a coffee. #MAW @CFASocietyIndia

"Doing nothing is a wilful act of omission", Mr. B says.
Decision to hold a stock is also a wilful decision. You better know why.
#MAW @CFASocietyIndia

"Most of us make about 35k decisions in a day", Mr. B surprises the audience #MAW @CFASocietyIndia

So we prefer sameness over change, settle for status quo, instinctual decisions, @CFASocietyIndia #MAW

Mr. B talks about sunk cost fallacy. And talks about his own inability to sell INFY at 100x PE. #MAW @CFASocietyIndia

"We overvalue what we own, but undervalue what we don't", repeats Mr.B @CFASocietyIndia #MAW

"IPOs are stacked against an average investors" #MAW @CFASocietyIndia

85% of forecasts made by highest paid analysts were wrong by 15% in the 1year period, recounts Mr. Bhattacharyya @CFASocietyIndia #MAW
His point? Don't forecast.

How to combat ego?
a. Diversify
b. Feynman Technique
c. Take the outside view

#MAW @CFASocietyIndia

#MAW @CFASocietyIndia

How do you overcome ego?
Love questions, doubt to stimulate, manage overconfidence, avoid confirmation bias, synthesize multiple estimates

#MAW @CFASocietyIndia

"Banish the fear of losing", Mr. B says at #MAW @CFASocietyIndia

Frank Knight, risky and uncertainty and 🦃problem
#MAW @CFASocietyIndia

Coping with emotions?
-Framing and Labelling
-Meditate
-Recognize, Accept and Investigate Emotional Response
-Automate
-Learn to recognize your emotional state
#MAW @CFASocietyIndia

Behavioral Investing is Rules Based Investing -Mr. B
#MAW @CFASocietyIndia

The Master concludes #MAW @CFASocietyIndia

#MAW

Thank you Mr. Bhattacharyya, you truly are the conscience keeper of Indian investors. #MAW @CFASocietyIndia