The inside view forecasts from the particulars of your case; the outside view starts with what happened to everyone who ever stood where you stand. Before underwriting a turnaround or an IPO, find the reference class, take its distribution as the first draft and only then adjust. The more luck there is in the domain, the more the base rate should govern.
Kahneman's synthesis of behavioral economics is the cognitive science underpinning every negotiation tactic. Anchoring, loss aversion, framing effects, and the planning fallacy — understanding why these biases operate, not just that they exist, makes you harder to exploit and more honest about your own irrationality.
“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson
Source: Andrew Wilkinson's Bookshelf, neverenough.com
Recommended by: Andrew Wilkinson, Charles de Vaulx and 32 others
The Good Judgment Project; the practices that measurably improve forecasts.
Recommended by: Patrick Collison and 9 others
A military historian's reflections on what history teaches and why we ignore it.
Recommended by: Morgan Housel, Nat Eliason, Shane Parrish
Recurring patterns drawn from world history: biology, morals, religion, economics.
“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson
Source: Andrew Wilkinson's Bookshelf, neverenough.com
Recommended by: Andrew Wilkinson, Balaji S. Srinivasan and 12 others
A 20-year test of 28,000 expert forecasts: foxes with many models beat hedgehogs.
“All pundits and commentators should publish their prediction track records, yet don't. What to pay attention to and what to ignore.” — Marc Andreessen
Source: @pmarca, 'Thread: Books I've recently read and recommend'
Recommended by: Marc Andreessen, Michael Mauboussin and 2 others
How judging firms by their results corrupts most business research and advice.
“Phil Rosenzweig's must-read book, The Halo Effect, shows this idea is alive and well in the business world.” — Michael Mauboussin
Source: Was Harry Potter Inevitable? Cumulative Advantage, Counterfactuals, and the Halo Effect (Legg Mason)
Recommended by: Michael Mauboussin, Ev Williams and 1 other
Eight mistakes experienced decision-makers repeat, and a correction for each.
Recommended by: Mohnish Pabrai and 1 other
Evidence that violence of nearly every kind has declined over history, and why.
Recommended by: Bill Gates, Mohnish Pabrai, Morgan Housel and 6 others
How to separate skill from luck in business, sport and investing.
Recommended by: Mohnish Pabrai, Jessica Livingston and 3 others
Steven Pinker's 500-page empirical survey of progress across 15 dimensions: health, wealth, equality, safety, knowledge, quality of life. Explicitly frames market economies and Enlightenment liberalism as the institutional sources of that progress. Has been criticized for cherry-picking metrics and underweighting catastrophic risks; the data itself is worth engaging with regardless.
Recommended by: Bill Gates, Andrew Wilkinson, Daniel Petre and 2 others
Hans Rosling was a global health professor, not an economist, which gives his data-driven case for human progress particular credibility. He shows, in meticulous detail, that almost every quantitative measure of human welfare has improved dramatically over the past century. He attributes this to global trade and economic development without being a polemicist.
Recommended by: Bill Gates, Alfred Lin, Daniel Petre and 4 others
Gladwell on underdogs and mistaken assumptions about advantage
“…books I've recommended, highlighted to death, or forced on friends.” — Andrew Wilkinson
Source: Andrew Wilkinson's Bookshelf, neverenough.com
Recommended by: Andrew Wilkinson, Mohnish Pabrai and 1 other
How present certainties will look to the future; outside view applied
“Hard to read and not emerge humbled.” — Marc Andreessen
Source: @pmarca, 'Thread: Books I've recently read and recommend'
Recommended by: Marc Andreessen, Brad Feld, Bryan Johnson and 1 other
Bevelin distilling observation and inference habits from Sherlock Holmes
Recommended by: Mohnish Pabrai, Patrick O'Shaughnessy and 1 other
Charlie Mungerrecommends 1 book here
Mark Zuckerbergrecommends 1 book here
Sam Altmanrecommends 1 book here