THINKING, FAST AND SLOW by Daniel Kahneman | Core Message

Thanks! Timestamps: System I: fast thinking, reactionary. System II: slow thinking, deeper level of analysis. 1. Frequent Exposure - The more we see something, the more we trust it. - Our preferences will be based upon our environmental conditions - Is this the best option, or the option that I've been frequently exposed to? - 1:52 2. Status Quo Bias - i. Loss aversion (losses loom longer than gains) & ii. Endowment effect (Emotional attachment) - Ask yourself: what opportunities (opportunity cost) am I losing by maintaining the status quo?- 3:32 3. Tunnel Vision - System I tends to use limited information (and block all conflicting information) to draw conclusions / quick judgments - (W-Y-S-I-A-T-I) What You See Is All There Is! System I Infers and invents causes and intentions, THEN neglects ambiguity and suppresses doubt- "Why might the opposite be true?" That will allow you to challenge old assumptions, and to avoid underestimating - 6:00 Be aware of biases to avoid costly mistakes.

Before an important decision -Slow down, and scan your "faulty thinking" checklist. That's an excellent summary of an exceptional book!

The Endowment Effect is what happens when I go to garage sales. Sometimes people will price their stuff too high because they have an emotional attachment to the items. I go into the sales with no emotional attachment and offer less for an item. If they have too much emotional value in it, they won't sell it for less and take a sure sale. Very valuable info here! Thanks for your hard work!!

1:50 Fast thinking is not faulty, it's incomplete and we can't do without it. Great video, thank you!

Firstly, I would like to congratulate you and thank you for the great video. I bought this book a month or two ago, and it was a hell of a pain to read it. Although I like to read scientific facts behind every event, like what we think and why we do so, this book goes deep into science that it becomes hard to continue after a while. You provided a great summary and explanation because I know how hard it would be to summarise this rather scientific explanation book.

For anyone still unsure about the ‘bat & ball’ question.... The total cost of both bat and ball have to add up to $1.10. So if the ball costs $0.10, then the bat has to cost $1.00. The DIFFERENCE BETWEEN THESE TWO NUMBERS IS $0.90. So to readdress the original question.... if they both have combined cost of $1.10, but the bat costs $1 more than the ball, how much does the ball cost?.... well, $0.05. That would leave $1.05 left over for the bat. The difference between $0.05 and $1.05 is $1.

outstanding videos. Unmatched review of some of the most important books ever written. Thanks, for your precious work.

Great summary! I've been listening to the audiobook on and off for a long time because unlike some other books this one really dives deep into the nuances of cognitive bias so I recommend reading the book because there are so many layers to it. It really forced me to challenge my deep rooted belief that humans have an intuitive wisdom beneath all the fear, emotion, and bias but I'm no longer sure it's that simple after reading this.

Read the book twice, but was unable to get the core concept, you made it oversimplified. Thank you

To give some additional insight in the "tunnelvision"-example: As mentioned multiple times in the book, humans are very bad at applying statistics. In the given example, one tends to conclude a probability from a representativeness. The given character traits are very typical of a librarian. The amount of farmers with these traits relative to all farmers is lower than the amount of librarians with these traits relative to all librarians. Therefore, the likelihood of having these traits, given that you are a librarian (farmer), is very high (very low). However, the question we ask is: "what's the likelihood of being either a librarian or a farmer, given the character traits". In this case, we assume that the ABSOLUTE number of nerdy farmers is still higher than the absolute number of nerdy librarians. For example, 5/10 (50%) librarians and 10/200 (5%) farmers are nerdy, then among the nerds, there is still a higher percentage of famers (10/15=66.7%) than of librarians (5/15=33.3%). From what is said in the video, one could conclude that the fact that there are 20x more farmers than librarians is sufficient to conclude that the guy is a farmer. Let's reduce the percentage of nerdy farmers to 2%. Now only 4/200 farmers are nerds. The likelihood of being farmer given you are a nerd is now only 4/9 compared to 5/9 librarians among the nerds. This is why you have to be careful, if the character trait is even more specific and if the base rates (the probability of belonging to a certain group, i.e. being a farmer/librarian in general) are not as different as in this case.

4:10 regarding the coin toss bet for losing 100 or gaining 150. You mentioned that most people would turn down the bet even though that if they bet 10,000 times they are virtually guaranteed to make money. However, the key part to the bet is not going broke before the odds turn in your favor. If you go broke in 5 or 10 turns then it does not matter what the overall odds are over 10k or even 1000 turns.

Great book, and thanks for trying to present it's main points simply. One criticism though: Kahneman is not simply "the author" - he's a Nobel Prize-winning research psychologist and economist. Might be worth mentioning that....very important.

4:24 hold up buddy, my fast thinking can confidently say I would not have the chance to take that bet 10 000 times lmfao

When you use your “slow reasoning System” and you still get it wrong because you don’t know math

what a brilliant youtube channel idea. Its like video spark notes. Love it

Great summary! I recently discovered your channel and am enjoy listening to your summaries while I'm cooking. Have you ever considered putting your recordings online as podcasts as well?

I am not a native English but I started to read this book even somehow it is hard to me to understand it but the information that this book has and gives you is incredible and I realized that we did not educated about the way of thinking , this book will help you to be more smart and be more wise so I highly recommend it you

One thing I want to point out is thinking fast in everyday matters isn't bad. You should ONLY jump to a conclusion by thinking fast when the decision you are making is of significant importance. Because doing that with everything in your life will be mind costly and probably cause "paralysis by analysis". "You get a 90% okay deal. Buy it" (simple)

I don’t think this man knows just how truly valuable this channel really is!

"if we don't do our research before an election, we'll trust the candidate who's name we've heard or seen the most" Story of the 2020 democratic primary.