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100 Little Ideas
Pareto Principle : The majority of outcomes are driven by a minority of events.
Morgan Housel • 100 Little Ideas
Buridan’s Ass : A thirsty donkey is placed exactly midway between two pails of water. It dies because it can’t make a rational decision about which one to choose. A form of decision paralysis.
Morgan Housel • 100 Little Ideas
Compassion Fade : People have more compassion for small groups of victims than larger groups, because the smaller the group the easier it is to identify individual victims.
Morgan Housel • 100 Little Ideas
Cobra Effect: Attempting to solve a problem makes that problem worse. Comes from an Indian story about a city infested with snakes offering a bounty for every dead cobra, which caused entrepreneurs to start breeding cobras for slaughter.
Morgan Housel • 100 Little Ideas
Cobra Effect: Attempting to solve a problem makes that problem worse. Comes from an Indian story about a city infested with snakes offering a bounty for every dead cobra, which caused entrepreneurs to start breeding cobras for slaughter.
Morgan Housel • 100 Little Ideas
Three Men Make a Tiger: People will believe anything if enough people tell them it’s true. It comes from a Chinese proverb that if one person tells you there’s a tiger roaming around your neighborhood, you can assume they’re lying. If two people tell you, you begin to wonder. If three say it’s true, you’re convinced there’s a tiger in your neighbor... See more
Morgan Housel • 100 Little Ideas
Texas Sharpshooter Fallacy: Goals set retroactively after an activity, like shooting a blank wall and then drawing a bullseye around the holes you left, or picking a benchmark after you’ve invested
Morgan Housel • 100 Little Ideas
Behavioral Inevitability : “History never repeats itself; man always does.” – Voltaire
Morgan Housel • 100 Little Ideas
Apophenia : A tendency to perceive correlations between unrelated things, because your mind can only deal with tiny sample sizes and assuming things are correlated creates easy/comforting explanations of how the world works.