History's Seductive Beliefs
The Morgan Housel Podcast
00:00
Illusion of Invulnerability
- People often believe that others' misfortunes cannot happen to them.
- They prefer to think in black and white terms rather than probabilities.
- This leads them to underestimate the risk of low-probability events and be unprepared when those events actually occur.
- Cumulative low probability events lead to a much higher chance of something bad happening.
- This tendency to dismiss low-probability risks makes individuals and societies vulnerable to a range of potential problems.
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