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Let’s face it.
We’re not as cool-headed as we think.
Daniel Kahneman, Nobel laureate, brought it into the limelight with his groundbreaking work, “Thinking, Fast and Slow”.
We’ve got two systems at play here.
System 1: Quick, intuitive. But often erroneous.
System 2: Deliberate, analytical. Yet, we don’t employ it as often as we should.
We’re run by biases, deeply ingrained.
Think you’re immune?
The numbers say otherwise.
Your favorite brand of cereal? Probably not a logical choice.
That car you bought last year? Primarily driven by emotion, not horsepower specs.
We’re victims of a prehistoric programming. Survival instincts from our cave-dwelling ancestors.
But it’s the 21st century.
We can’t afford to let primitive instincts drive modern decisions.
How do we tackle this?
Know the enemies: confirmation bias, anchoring, overconfidence.
They’re not just fancy terms. They dictate our decisions, daily.
Dive deep. Understand the root.
Why did you choose that investment? Because your neighbor did? Or was it a calculated move, backed by data?
Rise above it.
Develop a system, a checklist.
Foster skepticism, encourage debate.
Break the chains of instinctive decision-making.
Yes, it’s hard.
You’re not as rational as you think.
Be aware. Be vigilant.
Dare to defy your brain’s natural inclinations.
And the next time your instincts scream?
Give it a moment.
Let logic catch up.