Anyone who knows me knows, I am a lover of neuroscience and human psychology. Understanding how the brain works has completely changed the way I view investments — and, especially, how I conduct a meeting with a client.
Because, at the end of the day, the biggest mistake in the financial market is not in the product. It’s in the wrong shape how we interpret decision making.
There is still a silent belief in our industry: that the customer decides logically. He doesn’t decide.
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Daniel KahnemanNobel Prize winner in Economics, explained this simply. We have two systems of thought: System 1 — fast, intuitive and emotional — and System 2 — slow, analytical and rational.
The decision is born in System 1.
System 2 comes in later… just to justify it.
This explains why a client asks for ransom at the worst moment — even after a technically well-done allocation.
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It’s not a lack of information.
It’s behavior.
Morgan Housel goes in the same direction. For him, Financial success is not directly related to intelligence. It is related to behavior over time.
Smart people break.
People disciplined build heritage.
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Because investing well is not about getting more right. It’s about making fewer mistakes — especially in the most emotionally difficult moments.
But there is a point that few delve into.
More than ten years ago, I read a letter from Dynamo which expanded this discussion brilliantly. They suggest the existence of a “System 3”.
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It is not the System 1 impulse.
Nor the rationalization of System 2.
It is conditioned behavior. Something you repeat so many times that it becomes automatic.
And, in practice, this is what most impacts an investor’s results.
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Because the problem is rarely in an isolated decision — but in the repeating pattern over the years.
This vision connects directly with studies by Dr. Joe Dispenza. He argues that most of the our thoughts are not new — they are repetitions.
We have around 70 thousand thoughts every day, 80% of these thoughts today are the same as what we thought yesterday.
And, if the thought is repeated, the behavior is also repeated.
And, if the behavior is repeated, the result too.
This is why so many people spend years investing… without evolving.
They are not making new decisions.
They are just reacting based on past experiences.
Now, take this to a client meeting.
You can explain macro scenarioshow graphs, talk about diversification, risk, horizon…
But, if you don’t understand how that customer thinksfeel and react, all of this becomes noise.
Because you are trying to talk to System 2… while the decision has already been made in System 1.
I’ve seen this happen countless times.
The advisor explains it perfectly.
The client agrees with everything.
And, days later, does exactly the opposite.
Not for lack of capacity.
But due to an excess of untreated emotion.
This is where most people go wrong.
Try to convince more.
Explain better.
Show more product.
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When, in fact, should do the opposite: understand behavior… and drive the decision. In practice, this means some simple — and profound — things.
It means knowing that the pain of loss weighs more than the pleasure of gain.
It means understanding that customers value what they feel — not what they understand.
It means structuring a conversation that reduces anxiety before presenting a solution.
And, mainly, means accepting a truth that changes everything:
The portfolio is derived from the plan — not the other way around.
When you understand this, it changes the game.
You stop being someone who explains investments and become someone who builds behavior.
And this is what sustains results in the long term.
Because, in the end, the truth is uncomfortable — but simple:
The customer does not lose money due to lack of intelligence.
He loses money because he doesn’t understand how he decides.
And the role of the advisor is not to prove that he is right.
It’s about helping customers behave better when it matters most.
This is still little explored territory in the market.
But this is exactly where the difference begins between those who manage portfolios… and those who build long-term relationships.
Because those who sell products are charged for profitability.
Those who offer services are charged for trust.
