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A review by tim_ohearn
Thinking, Fast and Slow by Daniel Kahneman
4.0
The first three sections of the book proved to be engaging. By the last two sections, the academic nature of the writing and the accumulation of terms/"effects" and past examples became burdensome. I found myself stopping to analyze my thought process many times, which was initially interesting but eventually made me feel like I was in a competition to outsmart Dr. Kahneman's predictions/data of how my mind would instinctually react to certain situations and questions.
Overall, it was a fascinating but not by any means a light read. Do not be fooled into thinking that this book focuses on the stock market or other financial decision making. While there are many mentions of and conclusions related to it, the scope of the actual research conducted draws from random participants on a much, much lower level. Kahneman even goes so far as to admit that seasoned stock traders will behave differently compared to many of the test subjects in the studies he cites (mainly due to how they are inclined to treat losses), so don't expect to gain many insights into how finance professionals think. The chapters on Prospect Theory and the Fourfold pattern of risk attitudes are probably the most applicable.
As a whole, the scope is too broad to relate to any field other than Decision Making or Cognitive Psychology.
Overall, it was a fascinating but not by any means a light read. Do not be fooled into thinking that this book focuses on the stock market or other financial decision making. While there are many mentions of and conclusions related to it, the scope of the actual research conducted draws from random participants on a much, much lower level. Kahneman even goes so far as to admit that seasoned stock traders will behave differently compared to many of the test subjects in the studies he cites (mainly due to how they are inclined to treat losses), so don't expect to gain many insights into how finance professionals think. The chapters on Prospect Theory and the Fourfold pattern of risk attitudes are probably the most applicable.
As a whole, the scope is too broad to relate to any field other than Decision Making or Cognitive Psychology.