Michael Mauboussin — How Great Investors Make Decisions, Harnessing The Wisdom (vs. Madness) of Crowds, Lessons from Race Horses, and More (#659) - The Blog of Author Tim Ferriss
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Michael Mauboussin — How Great Investors Make Decisions, Harnessing The Wisdom (vs. Madness) of Crowds, Lessons from Race Horses, and More (#659) - The Blog of Author Tim Ferriss
30 Useful Concepts (Spring 2024)
open.substack.com
Cognitive biases in decision-making: doubt avoidance and inconsistency avoidance tendencies, featuring insights from Munger and Kahneman on managing uncertainty
TRANSCRIPT
What triggers this tendency? Two things, really. Puzzlement and stress.
When you don't understand something and you feel pressure, anxiety, or scarcity, the doubt avoidance tendency kicks into high gear. Your brain desperately wants to resolve the uncertainty and will grab onto almost any answer.
In business, this shows up constantly. You're in a
... See moreWhat’s surprising about these results is that we typically celebrate great entrepreneurs and leaders for being strong-minded and clear-sighted. They’re supposed to be paragons of conviction: decisive and certain. Yet evidence reveals that when business executives compete in tournaments to price products,19 the best strategists are actually slow and
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