Welcome, friend and future deep-dweller!
In this episode of Deeponomics, we sit down with Les Coleman to examine the widening gap between modern finance theory and the realities of investing.
Coleman, a multidisciplinary researcher and long-time critic of conventional models, takes aim at the limitations of both neoclassical and behavioral finance. While behavioral finance may explain why investors act the way they do, Coleman argues it rarely offers guidance that actually improves decision-making.
We explore his view of financial markets as complex closed loop systems—interconnected, adaptive, and inherently difficult to predict.
From risk management to the underperformance of active fund managers, Coleman calls for a more grounded, multidisciplinary and applied approach to research.
He also shares principles from his own approach to equity investment, including why naive extrapolation of recent data might be the only useful forecasting tool.
In the end, Coleman’s message is one of humility: finance offers no certainties, investing is inherently challenging, but questioning assumptions, adapting to change, and drawing on multiple disciplines can improve our approach.
Learn more about Les Coleman: https://findanexpert.unimelb.edu.au/profile/75699-les-coleman
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