Using Decision Science in Investing: Masters in Business with Omar Aguilar

Omar Aguilar, President, CEO, and CIO of Schwab Asset Management, explores the integration of quantitative research and behavioral finance in modern portfolio management. Success in asset management relies on combining scalable, low-cost manufacturing with transparent distribution to help clients achieve long-term goals. Aguilar identifies four primary investor biases—herding, recency, confirmation, and home country bias—and advocates for a disciplined approach centered on staying invested, diversified, and systematic. While AI enhances operational efficiency and research capabilities, human relationships remain essential for personalized financial advice. Furthermore, investors should approach private markets with caution, prioritizing liquidity understanding and risk budget allocation over the pursuit of higher returns. As markets evolve, the focus shifts toward broader sector participation and evaluating the profitability of capital expenditures in the ongoing AI-driven cycle.