1. Collaborative FundMorgan Housel2/20/2015 min
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    Collaborative Fund
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    • deephdave
      Top reader this weekTop reader of all time
      4 years ago

      Interesting ideas! @collabfund Some of my favorites:

      Curse of Knowledge: The inability to communicate your ideas because you wrongly assume others have the necessary background to understand what you’re talking about.

      Base-Rate Neglect: Assuming the success rate of everyone who’s done what you’re about to try doesn’t apply to you, caused by overestimating the extent to which you do things differently than everyone else.

      Pareto Principle: The majority of outcomes are driven by a minority of events.

      Sturgeon’s Law: “90% of everything is crap.” The obvious inverse of the Pareto Principle, but hard to accept in practice.

      Ringelmann Effect: Members of a group become lazier as the size of their group increases. Based on the assumption that “someone else is probably taking care of that.”

      Boomerang Effect: Trying to persuade someone to do one thing can make them more likely to do the opposite, because the act of persuasion can feel like someone stealing your freedom and doing the opposite makes you feel like you’re taking your freedom back.

      The 90-9-1 Rule: In social media networks, 90% of users just read content, 9% of users contribute a little content, and 1% of users contribute almost all the content. Gives a false impression of what ideas are popular or “average.”

      Poisoning the Well: Presenting irrelevant adverse information about someone in a way that makes everything else that person says seem untrustworthy. “Before you hear my opponent’s healthcare plan, let me remind you that he got a DUI in college.”

      False Uniqueness Effect: Assuming your skills are unique when they’re not. Comes from conflating “I’m good at this” with “Others are bad at this.”

      Cobra Effect: Attempting to solve a problem makes that problem worse. Comes from an Indian story about a city infested with snakes offering a bounty for every dead cobra, which caused entrepreneurs to start breeding cobras for slaughter.

      Hormesis: Something that hurts you in a high dose can be good for you in small doses. (Weight on your bones, drinking red wine, etc.)

      Bizarreness Effect: Crazy things are easier to remember than common things, providing a distorted sense of “normal.”

      Woozle Effect: “A reliable way to make people believe in falsehoods is frequent repetition, because familiarity is not easily distinguished from truth.” - Daniel Kahneman.

      Dunning-Kruger Effect: Knowing the limits of your intelligence requires a certain level of intelligence, so some people are too stupid to know how stupid they are.

      Fact-Check Scarcity Principle: This article is called 100 Little Ideas but there are fewer than 100 ideas. 99% of readers won’t notice because they’re not checking, and most of those who notice won’t say anything. Don’t believe everything you read.