dave_v_samuel Profile picture
Jan 27 β€’ 15 tweets β€’ 3 min read
"Remarriage is the triumph of hope over experience." (samuel johnson)

The beauty and the risks of one of the most common cognitive biases: the optimism bias.

🧡 πŸ‘‡
1.

Let's start with the definition:

the tendency to overestimate our likelihood of experiencing good events and underestimate bad events likelihood.

It's a cognitive illusion that about 80% of us have: health issues, finance, career are all influenced by our optimistic bias.
2.

Actually our bias is more towards "private" optimism:

we're optimistic about ourselves, about our kids and our families, but we're not so optimistic about our fellow citizens or our country's future.
3.

Just a little scientific note:

the bias depends on a specific brain deficiency to respond to bad news.

And if your brain is failing at integrating bad news about the future, you will constantly leave your rose-tinted spectacles on.
4.

Without the optimism bias, we would all be slightly depressed.

People with mild depression don't have a bias when they look into the future: paradoxically, they're actually more realistic than healthy individuals.
5.

But the question is, is it good for us?

Well, we have two different theories about:

.no, it's not: the secret to happiness is low expectations.

.fuck yes: high expectations enhance wellbeing!
6.

The logic behind the first theory:

if we don't expect greatness, to be healthy and successful, well we're not going to be disappointed when these things don't happen.

Moreover, we're pleasantly surprised when they do.
7.

Fair enough... but the second theory seems to have many more strengths:

.high expectations always feel better

.​regardless of the outcome, the pure act of anticipation makes us happy

.optimism changes subjective reality, and acts as a self-fulfilling prophecy.
8.

Personal note about the power of anticipation:

maybe because of this I like much more the weeks between football champions league semifinal and final, than the final itself πŸ€”(let alone when my team lost the last battle πŸ˜€).
9.

So, many experiments have shown that optimism is not only related to success:

- it leads to success -

Optimism leads to success in many fields, and maybe the most surprising benefit of optimism is health: If we expect the future to be bright, stress and anxiety are reduced.
10.

But just be aware: unrealistic optimism can lead to risky behavior as well.

Think about reckless financial moves, or planning errors with projects costs and durations.

The British government, for example, adjusted the 2012 Olympic budget for the optimism bias.
11.

Protect ourselves from the dangers of optimism, but at the same time remain hopeful:

this is the challenge, and -Knowledge- is the key!

Becoming aware of the bias does not shatter the illusion and its benefits, but protects us from unrealistic expectations.
thanks to Tali Sharot, for this 2012 TED talks πŸ‘‡

ted.com/talks/tali_sha…
In summary:

.80% of us have optimism bias

.is it good for us? ok, low expectations can be useful in some cases...

.but high expectations enhance wellbeing and act as a self-fulfilling prophecy

.just be aware and protect yourself from unrealistic optimism
If you like this content, please share and make sure to follow @davevsamuel for new daily 🧡 about business, personal growth and behavioral economics.

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More from @davevsamuel

Jan 28
10 simple steps to boost your financial health!

You just need a focused day: let's call it the "financial health day".

πŸ§΅πŸ‘‡ Image
1.

Just as you plan your vacations, you should devote a day on your calendar to reorganizing your finances:

a financial day is just as important and lets you get your life in order when you have enough decision-making bandwidth.
2.

The first focus should be on your cash flow statement:

.fixed expenses: bills, housing payment, car and cell phone provider
.revenue streams: do you have just one full-time job or other positive cash flow?

Check consistency between your costs/revenues structure. Image
Read 16 tweets
Jan 27
How to save above 2.000 Jewish children from the Nazis:

a jar and a lot of courage in the recipe of Irena Sendler. πŸ§΅πŸ‘‡

#HolocaustMemorialDay2022 Image
1.

First of all, who was Irena:

"Nom de guerre" Jolanta (15 February 1910 – 12 May 2008), was a Polish humanitarian, social worker, and nurse who served in the Polish Underground Resistance during World War II in German-occupied Warsaw.
[source: Wikipedia]
2.

She was already furious as a young woman at the constant discrimination against her Jewish friends.

As a student in social welfare at the University of Warsaw, Sendler publicly denounced the segregation of classrooms, earning her a suspension and a bad reputation.
Read 13 tweets
Jan 27
The daily dose of "ideas worth spreading":

my growing library of TED 🧡 πŸ‘‡πŸ‘‡
1.

Learning whatever your curiosity suggests, with the 20 hours rule πŸ‘‡

2.

The powerful concept of -Antifragility- πŸ‘‡

Read 8 tweets
Jan 26
Everyone think that motivation and problem solving are driven by incentives... but it's not the case!

and here is why πŸ§΅πŸ‘‡ Image
1.

The very first prove was an experiment in behavioral science, "the candle problem", created by psychologist Karl Duncker:

.a candle
.a box of thumbtacks
.some matches

The goal: to attach the candle to the wall so the wax doesn't drip onto the table. Image
2.

To solve the problem, the key was to overcome what's called "Functional fixedness":

-the inability to realize that something known to have a particular use may also be used to perform other functions-

in other words:
thumbtacks box <--> platform for the candle. Image
Read 13 tweets
Jan 24
Never heard of positive harms?πŸ€”

ok, stay with me: let's deconstruct one of the best concept that you can learn for business, finance, every days life:

-#antifragility-

πŸ§΅πŸ‘‡
1.n

Think about it: we have the word fragile, but we miss the exact opposite.

Robust is not enough: the resilient resists shocks but
stays the same.

We want to define something that gain from disorder/errors/shocks: Maestro @nntaleb gave us the term "antifragile".
2.n

The best representation of antifragility is Hydra:

Hydra, in Greek mythology, is a serpent-like creature that dwells in the lake of Lerna, near Argos, and has numerous heads.

Each time one is cut off, two grow back.

So harm is what it likes. Image
Read 17 tweets
Jan 23
Learning whatever your curiosity suggests: it's doable!

Malcolm Gladwell says something different in his "Outliers: The story of success"... but there was a bug in that book

πŸ§΅πŸ‘‡
1.n

The thesis of Gladwell was:

- you need as much as 10.000 hours - booom!

just "Practice a lot, practice well, and you will reach the top of your field"
2.n

The bug:

the 10.000 hour rule came out of studies of expert-level performance:

. professional athlete
. world class musicians
. chess grand masters
...

Professor K. Anders Ericsson, at Florida State University, is the rule originator.
Read 13 tweets

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