Stress-Influence Tendency Bias
Number 15 Of The 25 Cognitive Biases...
We allow the onset of stress to make fast, extreme decisions which can often be a mixed bag of good and bad.
Examples Of The Stress-Influence Tendency Bias
Adrenaline tends to produce faster and more extreme reactions. Some stress can improve performance but heavy stress often leads to dysfunction.
How To Avoid Falling Victim To The Stress-Influence Tendency Bias
If possible avoid making decisions when you're stressed.
Set yourself a cooling off period or put aside a block of time to take inventory on the situation when you're not stressed.
Examine your options after going for a run, getting a massage or performing some guided meditation - then you'll be in the right frame of mind.
Want To Know More About Charlie Munger's 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!)