#67 Jaime Lester: Pause to Think

This Investing by the Books podcast episode interviews Jaime Lester, a hedge fund veteran and Columbia Business School adjunct professor, about his book "Pause to Think: Using Mental Models to Learn and Decide." The discussion covers Lester's definition of mental models, his selection process for the 32 models in the book, and how these models apply to learning, decision-making, investing, and achieving happiness. Lester emphasizes the importance of checklists in investing and the need to avoid cognitive biases, particularly the "commitment bias." He advocates for a long-term, less risky investment strategy, suggesting that individual investors can often outperform actively managed funds by creating their own low-cost indexed portfolios. The interview concludes with book recommendations and a reflection on Lester's career and philosophy.