Detecting Deception in Due Diligence: Insights from a Former CIA Officer.

As an investor, due diligence is essential to understanding the potential of a company. While analyzing financial statements and number crunching are common techniques, there’s another aspect of due diligence that is often overlooked: interrogating senior executives and employees to determine the truth about a business. In this episode of Odd Lots, we speak with Phil ‘Dick’ Houston, a veteran CIA officer known as the human lie detector.

Phil has authored a book on spotting lies and has worked closely with entrepreneur Brad Jacobs on due diligence for senior hires and potential investments. During the episode, Phil shares his strategies for identifying deceptive behavior and explains how these tactics can be applied to the corporate world. By asking the right questions and observing nonverbal cues, Phil is able to uncover inconsistencies and falsehoods in people’s stories. His expertise in detecting lies has been invaluable to Brad Jacobs in making informed decisions about business ventures.

While listening to this episode of Odd Lots, investors can gain valuable insights into the importance of thorough due diligence beyond just analyzing financial data. Phil’s expertise in spotting lies can help investors make more informed decisions and avoid potential pitfalls in the corporate world. Subscribe to the podcast on Apple Podcasts or Spotify to learn more about how to navigate the complexities of due diligence in investing.

Overall, thorough due diligence is crucial for any investor looking to make informed decisions about their investments. While financial analysis is important, it’s equally important to question those involved in a company or business venture to gain a full understanding of its potential successes and risks.