Proportionality bias is the tendency to believe that big events must have causes that are equally big in magnitude.

“we want to proportion causes and effects they should be roughly equal”

Magicians leverage the audience's existing knowledge and their tendency to fill in gaps to create illusions.

“I'm relying on the bank of information you have in your head against you it's ta chi I know what you know and I know that whenever you view anything you have to fill in the blanks with lots of information I show you a couple of things and you say okay this makes sense this and I know how you think”

Individuals are most prone to acting irrationally when under the influence of strong emotions, as they prioritize immediate impulses over long-term welfare.

“as such we're most likely to act when our judgment can be trusted least solution don't trust thoughts you have while emotional instead pause and wait for the feeling to pass before acting”

Acknowledging the existence of cognitive biases is a necessary step for attempting to overcome them.

“Um, the first one is just being aware that you have these, which is something that we've already kind of kind of worked through on this episode”

Humans are inherently hardwired to use mental shortcuts that lead to cognitive biases.

“And this stuff is hardwired into us because like I just said, we take mental shortcuts. And the problem, Chuck, is what we're talking about mostly today are unconscious biases,”

Investors should accept that biases are hard to turn off and instead aim to recognize when high-stakes decisions make them prone to errors.

“Learning to recognize situations in which mistakes are likely and try harder to avoid significant mistakes when the stakes are high.”

Investors must use critical thinking to avoid correlation bias, which occurs when they mistake unrelated events for causal relationships.

“The best defense that you can have is to have a critical mind. Never blindly follow a statement without doing your own research and looking directly at source material. If someone says something, have a look at the statistics that back up what they say.”

He identifies the visible effort fallacy, where people wrongly assume that more complex or expensive wellness routines are inherently more effective than simpler, fundamental health habits.

“People tend to undervalue behaviors that seem easy, which is particularly relevant to like people tend to gravitate today on social media at least and in the of course the world of podcasting at large to these intricately complex wellness routines that give the impression that you need to have a sev”