When to Speak Up and When to Stay Quiet & Why Smart Investors Do Crazy Things
Summary
Host Mike Carruthers discusses the science of speaking up with social psychologist Vanessa Bohns, who explains how to navigate the "mum effect" and when to offer feedback. The episode also features behavioral finance expert Alex Edmonds, who explores why markets overreact to news and how everyday investors can benefit from compounding and index funds. Additionally, the show shares quick facts about indoor spiders and the specific pumpkin varieties used for baking versus carving.
Topics discussed
Show intro and sponsor reads
Why spiders appear in houses in the fall
Introduction to the dilemma of speaking up
Interview with Vanessa: The psychology of feedback
Why we hesitate to correct others
The lipstick study and the bystander effect
When to give feedback: Utility vs. Ego
Predicting outcomes: Goals and the 'If I were them' test
Applying the perspective-taking intervention
Sponsor segments: Vinted and Shopify
Navigating compliments and 'benevolent honesty'
The elevator story: Communicating care without fixing
Compliments, warmth, and asking before giving feedback
Sponsor segment: American Express Business Platinum
Interview with Alex: The madness of markets
Market bubbles, contrarian investing, and Julian Robertson
The power of compounding and index funds
Why individual stock picking often fails
How emotions and sentiment drive market movements
Momentum vs. Reversal and evaluating fund managers
Fun fact: The origin of canned pumpkin
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