Studies of how executives and organisations misjudge, from groupthink and the halo effect to metric fixation and corporate moral codes.
How the wish for agreement in close groups led to fiascos like the Bay of Pigs.
“One of my favourite books, Groupthink by Irving Janis, breaks down how small, cohesive groups of very smart people can make very bad decisions.” — Adam Weiss
Source: Weiss naming Groupthink one of his favourite books
Recommended by: Adam Weiss, Barton Biggs
How the way organisations divide work blinds them, and how some break down silos.
“Gillian Tett's new book the Silo Effect, a thoughtful discussion of the downside of narrow specialisation.” — Seth Klarman
Source: Klarman on Gillian Tett on the downside of specialisation
Recommended by: Seth Klarman
How fixation on measured performance damages the work it is meant to improve.
The biases that distort managers' decisions, with exercises that show them.
Recommended by: Mohnish Pabrai, Charlie Munger and 1 other
Recommended by: Mohnish Pabrai
How the Oakland A's won on a small payroll by buying players the market undervalued.
“understanding how to buy undervalued players is very similar to buying undervalued stocks and so that's a really helpful book” — Joel Greenblatt
Source: Masters in Business transcript: Joel Greenblatt (2018)
Recommended by: Joel Greenblatt, Mohnish Pabrai, Ev Williams and 2 others
Recommended by: Mohnish Pabrai
Recommended by: Mohnish Pabrai
How judging firms by their results corrupts most business research and advice.
“Phil Rosenzweig's must-read book, The Halo Effect, shows this idea is alive and well in the business world.” — Michael Mauboussin
Source: Was Harry Potter Inevitable? Cumulative Advantage, Counterfactuals, and the Halo Effect (Legg Mason)
Recommended by: Michael Mauboussin, Ev Williams and 1 other
Recommended by: Mohnish Pabrai, Warren Buffett
Complex problems yield to trial and error, not expert plans, and how to run it.
Recommended by: Mohnish Pabrai, Patrick O'Shaughnessy
Recommended by: Andrew Wilkinson
Charlie Mungerrecommends 1 book here