Mental Models: Keys to Flexible Thinking and Problem Solving: #45

The keys to flexible thinking come from exploring the different solutions to a problem vs. exploiting the rewards, resulting in perseveration behavior. In this episode we explore the ‘set effect’ which is linked to problem solving. An example of successful flexible thinking and over coming the ‘set effect’ is when Warren Buffet realized that investing had changed and it was time to find a new approach and move away from Net-Nets, which he had learned from his mentor Benjamin Graham. Investing tips include discipline, awareness too changes and sticking to the circle of competence. See Chapter 8 in our book “Understanding Behaviorally Bia$” to learn more about these 3 tips, as well as post-moretems and deep analysis. http://amzn.to/2XHtsOE Chess experts such as the chess masters at the University of Texas at Dallas (UTD) are experts and can utilize flexible thinking and overcome the “set effect.” As we become experts in a field, such as investing we can become more flexible thinkers. Research by Dr. Daniel Krawczyk on chess experts. https://www.utdallas.edu/reasoninglab/research/expertise-and-cognition/ UTD chess team: https://www.utdallas.edu/chess/chess-team/ “Understanding Behavioral Bia$” will help you overcome the biases that are keeping you from investment success! http://amzn.to/2XHtsOE Authored by Daniel Krawczyk, Ph.D. & George Baxter, JD, CFA your hosts of Mental models Podcast. #mentalModels VIDEO of Dr. Daniel Krawczyk on Fox4News discussing new book “Understanding Behavioral Bia$" https://www.fox4news.com/video/655696