Four Rules to Better Decision Making by 

Nobel laureate Daniel Kahneman. 

Mr. Kahneman has transformed the fields of economics and investing. He gives his advice for better decision making. 

1️⃣ Don’t Trust People, Trust Algorithms.

“Algorithms beat individuals about half the time. And they match individuals about half the time,” Kahneman said. “There are very few examples of people outperforming algorithms in making predictive judgments. 

An algorithm is a rule. You can just construct rules.”

And when we can’t use an algorithm, we should train people to simulate one.

“Train people in a way of thinking and in a way of approaching problems that will impose uniformity,” he said.

2️⃣ Take the Broad View.

“The single best advice we have in framing is broad framing,” he said. “See the decision as a member of a class of decisions that you’ll probably have to take.”

3️⃣ Test for Regret.

“Regret is probably the greatest enemy of good decision making in personal finance,” Kahneman said.

“Clients who have regrets will often fire their advisers,” he said.

4️⃣ Seek Out Good Advice.

So who is the ideal adviser? “A person who likes you and doesn’t care about your feelings,” Kahneman said.