Picking stocks is a famously difficult exercise, not for the faint of heart. So how do investment professionals make decisions about which stocks to buy?

In this episode of All Else Equal, professors Jonathan Berk and Jules van Binsbergen interview Cliff Asness, cofounder and chief investment officer at AQR Capital Management, about his decision-making strategy. Fundamentally, Asness says, success depends on the ability to “withstand pain” when your investments perform poorly and the confidence to trust your judgment.

“Everybody talks about the long term, but actually being long-term is a superpower in investing if you can do it,” Asness says.

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All Else Equal: Making Better Decisions Podcast is a production of Stanford Graduate School of Business and is produced by University FM.

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