Thinking Fast and Slow: How to make better decisions and avoid hidden mind traps

You think you're rational? Think again. We love feeling like thoughtful decision-makers, but the truth is we're riddled with cognitive shortcuts.

Daniel Kahneman's Nobel Prize-winning work breaks down the systems of our mind. We constantly substitute hard questions with easy ones; e.g. Buying a stock because you like the company, not because you've done the data.

This episode cuts through the 300,000-word book to show you exactly how these shortcuts lead to everything from bad investments to pointless stress about the weather. It's time to stop letting your brain’s simple tricks run your whole life.

Stop overestimating the importance of your current stress.

Identify and reduce low-level daily pains (like a bad commute) for massive life returns.

Implement a "sleep-on-it" rule to override System 1's instant commitments.

Why let a lazy brain ruin your best decisions? Start thinking slower today.

Further Reading:

⁠Thinking Fast and Slow⁠ - Daniel Kahneman

⁠Predictably Irrational⁠ - Dan Ariely

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CHAPTERS

00:00 Understanding Cognitive Biases, comedy and systems of thinking

03:58 Deep Dive into System One and System Two Thinking

05:23 How System 1 and System 2 Work Together

06:49 System 1's Impact on Decision Making

08:26 System 1 and Politics

11:29 The Teenage Brain and System 2 Development

12:32 Cognitive Biases and Their Impact

17:45 The Law of Large Numbers

22:38 Prospect Theory, Risk Assessment and Loss Aversion

23:41 Rationality and Utility Theory in Economics

25:39 Prospect Theory: Perception of Value and Risk

27:16 Probability and Decision Making

29:29 The Experiencing Self vs. The Remembering Self

31:17 The Peak-End Rule and Its Impact on Memory

34:58 Momentary Pleasure vs Long-Term Satisfaction

38:09 The Focusing Illusion: What Really Matters

43:46 Final Thoughts and Recommendations Learn more about your ad choices. Visit podcastchoices.com/adchoices