Today’s first guest is David Adler, behavioral finance expert and author of Snap Judgment: When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes With Your Money. Tom Dziubek and I discuss with the author the elements of good financial decision making.
Tom Dziubek also speaks with Peter Porteous, CEO of Blue Line Innovations, creator of the Blue Line PowerCost Monitor. The PowerCost Monitor is a device that can be installed alongside utility meters to build awareness of the levels of energy use within a household to encourage smart decision about reducing energy use and cost.
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[00:00] Introduction from Tom Dziubek
[00:41] Interview with David Adler, author of Snap Judgment
— [01:16] Why people are such poor decision makers with their money
— [01:45] The “disposition effect”
— [03:20] Money managers using computer models vs. emotions
— [05:13] Taking advantage of the disposition effect
— [07:38] Snap judgments vs. well deliberated decisions
— [09:58] Tips for investors to counteract their tendencies to make snap judgments
[14:19] Interview with Peter Porteous about the PowerCost Monitor
— [14:51] Overview of the PowerCost Monitor
— [16:20] Installation of the device
— [17:22] Compatibility with meters in different countries
— [19:16] Frequency interference risks
— [19:52] Savings from using the device
— [20:42] Portability of data
— [22:16] Reaction from the utility companies
— [24:26] Blue Line Innovations’ relationship with Black & Decker
— [25:15] Battery details for the sensor and monitor
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Updated May 7, 2014 and originally published August 23, 2009. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @ConsumerismComm on Twitter and visit our Facebook page for more updates.