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Outcome Bias
By Some Ideas on Investing in Singapore  •  November 29, 2015
People judge decisions based on their outcome instead of the process of reaching the decision. This is a flaw that we should recognize and try to avoid as a good outcome can come from a less than ideal decision making process through luck while an unlucky event can lead to a bad outcome even though the decision making process was good.

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We tend to look at the quality of a decision based on its outcome, which is basically focusing on the results and not the process and is more apparent when there are negative outcomes. For example, given the same decision of going to the casino, there are 3 possible outcomes: we win money, we lose money or we have the same amount as when we entered. If we lose money, going to the casino would appear to be a bad decision, but if we ......
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By Some Ideas on Investing in Singapore
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