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10 Powerful Lessons of the book “The Art of Thinking Clearly”

The Art of Thinking Clearly

The Art of Thinking Clearly

by Rolf Dobelli


4.91K reads

1. Hard Work

Never underestimate the hard work and lower probability of success, just because we are shown more successful people than many more actual failures.

It does not mean, in any way, that you should not dream big. It just says that don't get overawed by the number of success stories you read an...

2. Confirmation bias is the mother of all misconceptions.

It is a tendency to interpret new information so that it becomes compatible with our existing theories.

Warren Buffet has seen people losing money with this because they ignore facts that contradict the theory in the mind of the investor.

Disconfirming evidence must be sought out to b...

 3. Speak your mind

If you ever find yourself in a tight unanimous group, you must speak your mind, even if your team does not like it, and even if it means risking expulsion from the warm nest.

And if you lead a group, appoint someone as devil's advocate.

He or she will not be the most popular member of...

4. Induction

Send an email to 10,000 people with the stock market predictions by dividing them into 2 groups - telling reverse prediction to each group. Prediction for one of the groups will come true.

Send a new prediction to the 5,000 whom you predicted correctly earlier - again after dividing them in...

5. Loss Aversion

The fear of losing something motivates people more than the prospect of gaining something of equal value.

6. Compounding

When it comes to compounding, don't trust your intuition - you have no idea how powerful it is.

99% Fat-Free product seems more healthy than a product with 1% Fat.

9. Passion

Follow your passion even if you have to do away with part of your income for that

10. Averages

Whenever you are dealing with averages, be careful of the distribution behind them.

A Bill Gates monthly income in a group of 50 ordinary citizens can give an extremely misleading average.

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