If Investors Really Listened To Data, They’d Be Investing In Women

Investors like to extol their data-driven approach. But then how come they won’t invest in women-led companies, despite the clear evidence that they perform better?

Put your intuition to the test for a moment: Would you say there are more words in the English language that start with K or that have a K as its third letter? Think about it for a moment.
When researchers asked a lot of smart people this question, they got a lot of wrong answers. More than two-thirds of respondents said that K more often appears as the first letter than the third. The truth is that a typical English text contains twice the number of words with K in the third position.
Because an analytical approach to solving this problem requires a dictionary and unreasonable amount of time, we must rely on intuition to answer it. Why, then, is most people’s intuition on this question so wrong?



10:03:20 04.06.2018