What Mike Prince From Billions Taught Me About Investing

Understanding My Impulses

I watched the new Billions series the other day, and I heard a great line by fictional character Mike Prince. He said this statement while trying to corral his new employees of the once Axe Capital-

"One of the secrets to being a great investor is recognizing the impulses that may lead you to make decisions based on emotions. If you're not training to recognize those, your subconscious will be just directed by them."

The reaction from the investment team was cavalier and dismissive, which is how I think most investors would react if being confronted with this statement.

I am not sure if there are any decisions in which emotions are absent. However, who wants to admit they their emotions are driven by impulsiveness?

After watching Billions, I thought about my impulses related to investment decisions.

1) I am eager to deploy capital to maintain relevance.

2) I can create "storied scenarios" about opportunities that can present themselves as good opportunities but aren't.

3) I have something to prove as an emerging manager, so the desire to compete is high when faced with a competitive deal.

Now that I am aware of these impulses, I can train my way to see through the fog and make better decisions. Who said streaming TV isn't educational!? Thanks, Mike Prince!