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“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” - Charlie Munger
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Here’s the fastest tour of all 25, grouped so you can actually remember them.
Social & Influence Biases – How people sway your thinking
- Liking/Loving Bias – You believe those you like are smarter or more right than they are. Example: “You overlook flaws in your favorite celebrity’s advice.”
- Disliking/Hating Bias – You dismiss valid ideas from people you dislike. Example: “If your rival says something brilliant, you still reject it.”
- Social Proof – You copy the crowd’s actions. Example: “If everyone’s rushing to buy, you feel you should too.”
- Authority Bias – You give more weight to experts. Example: “You buy the supplement because a doctor endorsed it on TV.”
Reward & Incentive Biases – How payoffs distort judgment
- Incentive-Caused Bias – People do what they’re rewarded for, even if wrong. Example: “A mechanic ‘finds’ more repairs when paid per job.”
- Reciprocation Bias – You feel obligated to return favors. Example: “A free sample makes you feel you should buy.”
- Commitment & Consistency Bias – Once you commit, you stick to it to seem consistent. Example: “You keep defending a bad decision because you made it publicly.”
Fear, Loss & Emotion Biases – Why feelings hijack logic
- Loss Aversion – Losses hurt more than gains feel good. Example: “You’d rather not lose $100 than win $100.”
- Envy/Jealousy Bias – Choices to match or beat others. Example: “You buy the car to keep up with your neighbor.”
- Stress Influence Bias – Stress changes how you process info. Example: “You make rash choices during a crisis.”
- Deprival Superreaction Bias – Losing something makes you overreact. Example: “You pay too much to get back a product you left behind.”
Pattern & Memory Biases – Shortcuts that mislead
- Availability Bias – You judge based on what’s easiest to recall. Example: “You fear plane crashes more than car accidents because they’re on the news.”