Does Our Unconscious Brain Make The Best Decisions?

This new study presents some evidence against the classical behavioral finance model. According to the study, the behavioral finance model which identifies humans as being flawed decision makers, doesn’t account for unconscious decisions. This study could help explain Warren Buffett’s savy at making seemingly unconscious decisions.

The study implies that brains gather information before reaching a confidence threshold (sounds a lot like sorting through annual reports). Then, after reaching a decision, the unconscious brain, has a pretty good grasp on the probabilities of being right. Click Here To Skip The Introduction & Read About Unconscious Decision Making

Article Introduction (Via University Of Rochester)

Researchers at the University of Rochester have shown that the human brain—once thought to be a seriously flawed decision maker—is actually hard-wired to allow us to make the best decisions possible with the information we are given. The findings are published in today’s issue of the journal Neuron.

Neuroscientists Daniel Kahneman and Amos Tversky received a 2002 Nobel Prize for their 1979 research that argued humans rarely make rational decisions. Since then, this has become conventional wisdom among cognition researchers Contrary to Kahnneman and Tversky’s research, Alex Pouget, associate professor of brain and cognitive sciences at the University of Rochester, has shown that people do indeed make optimal decisions—but only when their unconscious brain makes the choice.

Click Here To Skip The Introduction & Read About Unconscious Decision Making