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As we build on the economic recovery from COVID-19, we need to put our people and our purpose at the heart of financial and professional services to rebuild a more sustainable and inclusive economy - investing in better.
Due to the Duke of Marlborough‘s military genius and the crush that Queen Anne had on his wife, the duchess, the Marlboroughs were presented with two of the greatest houses of the age.
CEOs make mistakes due to their own psychological biases – but they also profit from the biases of others. Some exploit investors by catering to sentiment – adding “.com” to their name during the Internet bubble or entering “hot” industries to inflate their valuations.
Charles II‘s illegitimate son, the Duke of Monmouth, became one of the most influential and powerful men at the Restoration court. He married a Scottish heiress, Anne Scott, and together they became leaders of fashion and taste.
We often think that leaders are particularly strong in decision making – that’s why they’ve made it to the top. But evidence shows that even senior executives are prone to psychological biases, such as overconfidence, groupthink, and applying one-size-fits-all rules.
Sound investment decisions are critical for our long-term financial future. But psychological biases can lead investors to make costly mistakes – overconfidence can cause them to trade too much, and the reluctance to take a loss can encourage them to throw good money after bad.