“Imagine taking a test knowing the answer. While we know that history flows forward, it is difficult to realize that we envision it backward. Why is it so? We will discuss the point in Chapter 11 but here is a possible explanation: Our minds are not quite designed to understand how the world works, but, rather, to get out of trouble rapidly and have progeny. If they were made for us to understand things, then we would have a machine in it that would run the past history as in a VCR, with a correct chronology, and it would slow us down so much that we would have trouble operating. Psychologists call this overestimation of what one knew at the time of the event due to subsequent information the hindsight bias, the “I knew it all along” effect.”
―
Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
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Fooled by Randomness: The Hidden Role of Chance in Life and in the Markets
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Nassim Nicholas Taleb71,609 ratings, average rating, 3,644 reviews
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