Deprival-Superreaction Tendency Bias
Number 12 Of The 25 Cognitive Biases…
We react irrationally when there’s a chance we’ll love something we had or almost had… regardless of how small or petty it is.
Examples Of The Deprival-Superreaction Tendency Bias
The #1 example of this is attempting to take a toy out of a dogs mouth once it has been carrying it around, the dog will take you to war before it gives up its toy!
The toys it has not yet played with or placed in its mouth it could not care less about.
Another example of this I’ve seen time and time again is when you’ve got a perfect view at an event or concert and a car, person or object of any kind ever so slightly obstructs your view…
The arguments and disdain this can cause are highly irrational.
The pain in losing $100 is double that of the good feeling acquired from winning $100.
How To Avoid Falling Victim To The Deprival-Superreaction Tendency Bias
Understand that the only thing we’re not able to acquire more of is time, if you’ve lost money or skill this can be re-acquired.
Go out of your way to enjoy your winnings and appreciate them when you do have them instead of moaning on the losses you’ve experienced.
Want To Know More About Cognitive Biases & How To Dominate Life?
I recently purchased Charlie Munger’s flagship book, Poor Charlie’s Almanack – a book filled with hundreds of pages of wisdom from a billionaire and master of mindset and mental frameworks to improve your life..
This book cost me $65 USD. To most this will seem absurd…
“$65 for a book?! What a waste of money”
…these are the same people that spend hundreds of dollars on junk food and alcoholic beverages on Friday and Saturday night.
Delay The Instant Gratification
Don’t adopt the epicurean mentality of “eat, drink and be merry for tomorrow we die.”
You must think long term, you must delay the instant gratification we’re so used to experiencing in this life and invest for tomorrow (stoicism).
“Don’t invest in things that’ll rust, rot or depreciate, invest in things that’ll be worth more later or make you be worth more later”.
The information in this book is worth well over $65 if read and implemented, the information on investing and cognitive biases is worth its weight in gold.
But remember, It’s the application of knowledge that counts, not just the acquisition (read it and take action!)