THINKING FAST AND SLOW SUMMARY (BY DANIEL KAHNEMAN)

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In this animated video summary, I will present the top 5 takeaways (for investors!) from the psychological biases presented in Daniel Kahneman’s Thinking Fast and Slow.

Top 5 takeaways from Thinking Fast and Slow:
00:00 Intro
00:54 1. Fast and slow thinking - System 1 & 2 introduced
03:03 2. The priming effect
05:59 3. The anchoring effect
08:18 4. The framing effect
11:32 5. Cognitive ease/substitution

TL;DW:
- Humans have two decision making systems, and problems start to occur when system 1 is used in a system 2 situation (or the other way around)
- Avoid being a victim of priming (in the stock market) by establishing a system with predefined criteria for buying and selling stocks. Don’t let your surroundings influence you too much.
- Stocks are NOT cheap just because they have gone down in price – it’s only the anchoring effect that makes us believe so
- How you frame something can make a huge difference on how the message is perceived. A number presented without its proper context may be quite misleading.
- Because of cognitive ease, we tend to substitute some difficult questions for simpler ones. “Invest in company A?” becomes “Do I like company A?”.

My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

[TheSwedishInvestor]

Have you been a victim to any of the biases? 🧠 I know for sure that I have! Share your experiences with us in the comments below! ⏬

[wrayth]

I saw the guerilla but only counted 3 passes🤦🏽‍♂️😩

[minyeongjeong]

The thing with the vaccine is somewhat odd. On the first case, the actual probability of getting the disease is 1/1000. But for the second one, the probability is zero if you not choose to participate, which makes the cost higher to crank up the probaility from zero to 1/1000 in that case.

[keepitsteel]

In the 1/1000 disease section they are not the same question, question 1 acts on the premise you have already been exposed, question 2 acts on the premise you are being invited to be exposed in the future.

[rambo-rb]

Great lessons applicable to all aspects of life - not just investing.

[rics]

First youtube video that actually makes me grab a piece of paper without hesitation. Awesome content!

[HeretikTG]

I can't confirm that the choice on slide 4 is equally distributed, as you would pay little money for no downside at all. Or receive a little more money with a possibly devastating down side by.

[theotherway]

I got this book in combo with the mindfulness meditation workbook "30 Days to Overcome Procrastination" by Harper Daniels. Both were beneficial to me in setting up a time management plan and mindful routine.

[ozaurelius]

The girls in white shirts in this segment only passed it 4 maybe 5 times. Slow the Vid down and see for yourself.

[patrickcrean]

I disagree with example #4. I do not feel that they are equal. In one we are randomly exposed to an illness and the other we volunteer to possibly get the disease. Huge difference.

[ramanlakhera]

Quite a good effort by swedish investor. Loved the way the examples were put up.

[eduardoguevaras]

Excellent channel. Regards from Venezuela

[ethanYT_]

4:03 1st thing i thought of was inventor and fat, plus the actual choices never even popped up in my mind

[MrCptSilva]

I'm new to stock/etf trading. I never learned to be scared and sell when I see a drop, even if the drop is 20% or more in 24 hours. Thanks crypto for taking that fear away from me. I see crashes as stocks on sale.

[keanuleachay]

that stock chart that went from 30 to 10 foreshadowed $AAL pretty damn well

[troygrudintfgrudin]

I saw the gorilla, but wasn't able to keep track of how many times the girls in the white shirts passed the ball

[XCHASE]

Example #4. assumes the subject wants to generally avoid death in the first place, not everyone is

[heathersisto]

I like this book too !

I have been listening to the auto version of the book and It's has been very thearopy for me .

IAM about eight hour into the listening version but I give this book, five stars .

Thank you for your version of it too .

The writer of this book knows how to reach the difficult feelings an everyday person may be struggling with, and his words explain and give good ways to put things togather about diffacult thoughts and or behaviors in the mind that seems as if it can't be explained for whatever reason .

He, the narrator explains the things one's mind might be struggling with to make sense of, and again the book is good .

I got get back to listening to the other two hours of it .

I just been so busy as a struggling student and trying to make sense of behavior, I in counter often in my everyday life of conversations .

Now days, some people and not all want to know to much about what 9thrr people are thinking and I find that to be not normal .

The book explain varies levels of thinking and how to know what happening with certain kinds of mind thoughts that bring on questions of why .

The book goes in-depth of the how to, what is aquiring with simple things as mathematic figures, and counting is something that had to be accurate because those are things that let us as people, not let others interrupt for prevention to a health mind .

It's all about getting the mind thinking healthier thoughts and once you listen to how,
the book is designed .

It does exactly that, listening or reading to the book makes you feel so much better and focused, the how to be stronger in the mind .

plus, the writer is very smart for being write such
a good book like this ; it's wonderful .

how,
he explains certain things in the book and it's amazing ways on to focus better to think clear enough to do basic mathematics, is great feeling, the writers purpose is honored by me because it lets you know of your own mind control, and never anyone else .

I can't say enough about the book because it's a great five star book .

The book let's you know your mind is your own mind and it feels good to know that someone wrote something for those,
who might not need to be reminded of it but it does feel amazing that a person knows some people struggling knowing certain things about the mind and getting hold of ones on thoughts is always with healthier thinking that could be fast or slow thought patterns too, but the writer supports people in a great displined mind set to think without doubt, for oneself .

He is a great author and I grateful and thanful that he wrote the book because it's given me great techinics for thinking better with more clarity with my own mind, being able to know it is important to be able to do basic math with struggling with other thoughts

A learning book and it is very theapretic for me, and
It is a five star book...

And thanks to the person who provide good content on this channel .

You have good topics for the listening audience too .

Thanks for your good videos .

[destienyman]

based on the questions asked so far, I answered the opposite of the examples provided and is making this irrelevant to me. Is my intuition or Mindset 1 and 2 switched, Cause I think i understand the underlying explanation. it just doesnt apply to me. Example
the coffin questions i said yes right away cause funerals are at an all time high atm due to covid-19 do i like funerals absolutely not, but im sure in times like now its sure to boom due to high demand. and will peak when competition arrises

[spyderhobit]

My issue with 4 The Framing Effect is that in the first example you’re exposed to a disease and have no choice in the matter. In the second example you have a choice as to whether you’ll be exposed to the disease.