Thinking, Fast and Slow
Book Author: Daniel Kahneman
Have you ever thought of why you are thinking the way you are?
We are constantly making decisions based on our perceptions. However, in the current era of information overload, it takes intentional effort to understand the context and recognize the mental framework to make better decisions over time.
This book is a masterpiece of human cognition, unraveling the complex and sometimes flawed working of our minds. It introduces two main systems that govern our thought processes: System 1 and System 2. System 1 operates intuitively and impulsively, requiring no voluntary control, while System 2 engages in effortful and reflective thinking, demanding attention and concentration. Later, it presents how these two systems work together in judgment and decision-making.
In this review, I want to highlight two fundamental and fascinating mechanisms from the book that have been helpful for me: bias and choices.
About bias:
We often take mental shortcuts when faced with complex or unfamiliar scenarios. Although they increase the efficiency of thought processes, they can also lead to systematic errors and deviations from rationality, resulting in bias. For example, bias can occur when we rely on immediate examples that come to mind (availability bias) or when we process information to confirm our pre-existing hypotheses (confirmation bias). Biases are prevalent in our daily lives; the first step in mitigating them is recognizing them.
About choice:
We often engage in designing or evaluating choices when making decisions. However, choice is not a static concept with fixed options; rather, it represents a dynamic architect associated with value (subjective worth or desirability we assign) and frame (how it is presented). Furthermore, choices can be influenced by a combination of utility and emotion for each individual. Making informed choices requires understanding how these factors interplay and being mindful of our mental state.
Besides bias and choice, the book connects theoretical research and real-world examples, providing a comprehensive review of other cognitive traits in an easy-to-read manner.
As human beings, we all get confused or overwhelmed. Take a break, walk, and revisit your assumptions in these situations. You might make different decisions if you think differently!
Why I recommend this book
I first came across "Thinking, Fast, and Slow" by Daniel Kahneman at the beginning of my undergraduate studies to learn how to learn. I revisited it several times in my venture investment journey to learn more about the world and myself.
Venture is a journey of making constant decisions in the unknown, and positive results are often yielded from a collection of "wise" decisions. Recognizing individual patterns and biases in decision-making is an ongoing process.
So this book is the go-to for anyone in venture who wants to learn more about themselves and make better decisions in uncertainty.
