Each of four cards on a table has a letter on one side and a number on the other, but you can only see what is on the side facing up. What you see are two letters and two numbers:
A 4 D 7
Suppose the rule governing these cards is that if a card has a vowel on one side, it has an even number on the other side. Which two cards would you turn over to find out whether the rule is true? Take no more than twenty seconds.
Now go to the real world: Can you name at least two psychological/analytical errors that you see in this clip.
https://youtu.be/Cxjdj5_5yNM Take no more than 4.5 minutes–length of the clip. The investment bankers each have MBAs, CFAs, Accountng degrees etc. They are SMART!
Total time for test 5 minutes.
2016_templeton Hand-out to go with the above talk in 2016. A good discussion of the psychological strength needed to apply value investing principles.