Devil's Advocate

A person assigned to argue against a proposal regardless of their own view, so the case against it is made properly.

Example

One committee member is told in advance to build the strongest possible argument for declining.

Important

It only works if the role is assigned before the meeting and taken seriously. An improvised objection is easy to dismiss.

Related terms

  • Investment Committee (IC) — The group that reviews and approves or rejects investment proposals, typically in a fund or institutional investor.
  • Bear Case — The most plausible version of how an investment goes badly, argued seriously rather than as a token risk section.

Lessons that explain it

  • The committee's job is to break the memo, not approve it — An investment committee that never says no has stopped being a check on anything. The difference between a real pressure test and a rubber stamp is almost never visible from the approval rate alone. (13 min)

All 578 terms in the Investing glossary