In Part 1 of The Art of Thinking Clearly summary, we learn to be a better investor by managing our investor psychology. There’s a continuation to be wiser in other areas of our lives.
Summary #1: We can be blind-sided accidentally
Primacy and recency effects: the first trait, or more recent information, hold a dominating effect
Illusion of Attention: we are confident that we notice everything that takes place in front of us. But in reality, we often see only what we are focusing on. Remedy: check the periphery, in addition to the focus
Cherry picking: selecting and showcasing the most attractive features and hiding the rest.
Feature-positive effect: we place a greater emphasis on what is present than what is absent. Because it is mentally tough to perceive non-events.
Absence is much harder to detect than presence. The greatest philosophical question is why is there something rather than nothing?