There are economies of scale in financial decision-making: most workers know almost nothing about investing—many believe their own company's stock is safer than a mutual fund when virtually every economist regards concentrating in your employer's stock as the worst choice—so a more sophisticated party can offer sensible advice and a well-chosen default fund benefits unsophisticated investors.

causalpending

Speaker

Richard Thaler

Evidence Quote

investing in your own company is the dumbest thing you can do

Source

Richard Thaler on Libertarian Paternalism 11/6/2006EconTalk
Created: 6/13/2026, 7:01:05 PM

My Notes

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