EVEN TRUE STORIES ARE FAIRYTALES -Story Bias

We work on interpret information as being part of a larger story or pattern, regardless of whether the facts support or not. We want our lives to form a pattern that we can easily follow. It is clear that people first used stories to explain the world before they began to think scientifically. Making mythology older than philosophy. This has led to the story bias.

Business – Good storytellers know that including specific details is essential to capturing the listener’s imagination and making a story believable. So that businessman uses this bias to build a story around the products/services which can easily attract huge customers. When any good story about any product getting circulated then people are more likely to listen, empathise and act.

Investment – We are getting attracted by stories and those stories getting sold everywhere. We get to know about the story of any company and that attracts us, we invest rather checking that does these stories has any truth or not? If it is true then also, does it make sense at the current level of the price? When there is a success of any company, we get many stories on it. So that when any rosy story comes to us, we should check it thoroughly without any biases in mind with searching for disconfirming evidence. I always quote that “Stories are for kids, not for investors.”

This entire series will be review with various examples from books which are Thinking, Fast and Slow and The Art of Thinking Clearly.

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