Thinking fast and slow book for seller

Thinking fast and slow book for best seller

Good book

Great insights in to the human mind & decision making models and errors. The book engage the reader in every single chapter from the first to the last is really a type of writing that has the reader in awe. I recommend this book to anyone that likes to read non-fiction books

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Fast and Slow by Daniel Kahneman is probably the most important book of the 21st century. There are so many things to learn from this book. Below I've listed the ones that stood out for me.

• People intuitively can't think in probabilities.
• Fast thinking (System 1) uses heuristics (mental short-cuts), intuition and perception/memory and the vast majority of our decisions are made using this systems.
• Slow thinking (System 2) is based on reason and deliberate thought.
• System 2, unless trained, will often inherently trust system 1
• People avoid cognitive effort (slow thinking) and rely on their intuition too much.
• Pain and pleasure drives mostly everything.
• Nothing in life is as important as you think it is when you are thinking about it.
• Intuition is nothing more than recognition (sometimes superior recognition).
• It is easier to recognize the mistakes of others than our own.
• We know ourselves much less than we think we do as we don’t know the majority of our thoughts which are in the subconscious.
• Our mood affects our subconscious thinking.
• System 2 is in-charge of detecting lies and System 1 in believing them.
• Halo effect – a tendency to like everything about a person if you like one aspect of their personality.
• Availability bias – most obvious and prevalent example pops up first in the mind
• Statistical sampling can give strange results when using small numbers.
• Anchoring has a huge effect on our thinking and decisions and it can be found everywhere.
• Priming – our thoughts and behaviors are affected much more by our environment and other things we are exposed to than we care to admit or recognize. We can be primed just by being exposed to words.
• People are very bad at dealing with small risks. Either they ignore them altogether or tend to overreact.
• People ignore base rates when come across any new information.
• We fool ourselves by constructing inaccurate accounts of the past.
• We do not recognize role of luck in our life.
• We should start judging decisions by how they were made and not only by their outcomes.
• Overconfidence in explaining the past makes us believe that we can predict the future as well.
• Surrounding yourself with like-minded people can be dangerous as it reinforces your beliefs and you ignore new facts which don't match your perceptions.
• Planning fallacy – projects almost always go over budget and take longer than expected.
• Loss aversion is the driving factor in most financial and other decisions.
• Endowment Effect – value of something goes up when you own it.
• Bad events weigh much more in our mind than good things.
• Prospect theory shows how human beings decide between alternatives that involve risk and uncertainty. It shows that people think in terms of expected utility relative to a reference point rather than absolute outcomes.
• Do not consider one risk or gamble in isolation, think of all of them spread over a long period of time and will see that this decision actually carries very little risk.
• People keep mental accounts for their expenses/losses or actions in order to keep score.
• In order to avoid hindsight bias, make decisions after very thorough thought or almost none.
• Framing of a question or a situation greatly