Predicting the Future with Bayes Theorem

Five takeaways:

  1. This article explores Bayes Theorem, which provides a useful framework for integrating probability into your daily decision making.
  2. If a friend rolls a dice and covers it, and asks you to guess the #, your chance is 1/6. If they then say that it is an even #, your chance becomes 1/3. If they then say that it is not 4, you know you have two possible guesses and a 50% chance of guessing correctly. You have used new information to assess the situation and make the most educated guess possible: a Bayes-ian analysis.
  3. The Bayes Theorem involves conscious use of all relevant, up-to-date information in building probability as you make a decision. It forces us to pause and consciously open our thought process beyond the initial gut reaction.
  4. Using Bayes Theorem can be helpful in reminding you that immediate perception is imperfect. It reminds you to take a step back from initial judgment and assess all contexts involved in a decision.
  5. Someone who rejects Bayes-ian theory instinctively rejects new information, relying on preconceived notions. They are less likely to change their mind on anything, and thus more likely to lose out on productive discourse and decision making.

From Fs Blog:
Read the whole story.

 


This site may contain links to articles or other information that may be contained on a third-party website. Advisory Services Network, LLC and MAP Strategic Wealth Advisors are not responsible for and do not control, adopt, or endorse any content contained on any third party website. The information and material contained in linked articles is of a general nature and is intended for educational purposes only. Links to articles do not constitute a recommendation or a solicitation or offer of the purchase or sale of securities.

Why Success Can Feel So Bitter

Five takeaways:

  1. This piece warns us against anchoring our happiness to a far-off goal– especially those attained at significant personal sacrifice– because there is no guarantee that it will bring you long term satisfaction.
  2. Dreams and goals are valuable to us because they give us a metric for measuring progress. But Brooks argues that happiness in life is derived from progress, not from specific outcomes.
  3. Researchers have said that “when a goal is a true end point for progress, the cessation of forward motion can lead to a feeling of emptiness” once a goal is attained. This might be called the “post-achievement hangover.”
  4. To make sure you are channeling your goals positively, ask yourself three questions about your journey to accomplishment:
    • Are you enjoying the journey?
    • Is the reward for achieving your goal something you truly want?
    • Can you take one step at a time?
  5. One should always ask themselves: why is this my goal in the first place? If they cannot really answer that– it is time to move on with life.

From Arthur C. Brooks at The Atlantic:
Read the whole story.

Note: At the time of this posting The Atlantic offers five free article views per month.


This site may contain links to articles or other information that may be contained on a third-party website. Advisory Services Network, LLC and MAP Strategic Wealth Advisors are not responsible for and do not control, adopt, or endorse any content contained on any third party website. The information and material contained in linked articles is of a general nature and is intended for educational purposes only. Links to articles do not constitute a recommendation or a solicitation or offer of the purchase or sale of securities.

What the Second-Happiest People Get Right

Five takeaways:

  1. This article proposes that more happiness is not always better than less– that overprioritizing happiness can detract from the drive that provides meaning.
  2. Researchers recently examined a data set from a study that rated incoming college freshmen’s “cheerfulness” and tracked their income nearly two decades later– and found that the “most cheerful in 1976” were not the highest earners in 1995. This distinction went to the second-highest group, which rated their cheerfulness as “above average” but not in the highest 10 percent.
  3. The article does not deny that happiness is good; rather, it urges readers to remember that a little bit of unhappiness has benefits. It breeds ambition and solution-based thinking.
  4. “An aversion to unhappiness can lead us to forgo a meaningful life.” – To avoid failure (and the feeling of failure) many will avoid taking the risks or putting out the effort required to find fulfillment.
  5. Those with the highest performance in life have been forced to make decisions that were unpleasant and scary.

From Arthur C. Brooks at The Atlantic:
Read the whole story.

Note: At the time of this posting The Atlantic offers five free article views per month.


This site may contain links to articles or other information that may be contained on a third-party website. Advisory Services Network, LLC and MAP Strategic Wealth Advisors are not responsible for and do not control, adopt, or endorse any content contained on any third party website. The information and material contained in linked articles is of a general nature and is intended for educational purposes only. Links to articles do not constitute a recommendation or a solicitation or offer of the purchase or sale of securities.

How to Succeed at Failure

Three takeaways:

  1. This article provides practical advice on turning a major disappointment or failure into a life-defining opportunity for personal growth.
  2. A first step is realizing that “ruminating over a failure keeps it front and center and can lead to catastrophizing” – making it much more drastic in your mind than it is in reality. This can lead you to depression and anxiety, and then more failure.
  3. Brooks offers three handy tips for contextualizing failure in a productive way, based on conversations with Xiaodong D. Lin, a professor of cognitive studies at Columbia University’s Teachers College who has spent decades studying human failure.
    • Think About Other’s Past Failures (As Well as Your Own)– One must take the time to remember that even the most successful people have failed and slipped up countless times. At the same time, analytically breaking down your own failures can lead to a sense of control and understanding that alleviates frustration.
    • Stop Angling for Success– Chasing success above all else is a mistake. Remember that perfection is unattainable, and you will learn gradually to see the progress in each setback- and that the sting of failure is temporary.
    • Keep Your Ideals Front and Center– Nobel Prize winners do not set out to win the Nobel Prize. They set out to solve specific problems. To make new discoveries. A failure committed in the pursuit of a goal or purpose will more easily translate to productive learning.
    • People who pursue a greater sense of well being find meaning, learning, and purpose in their failures– using them to grow stronger and more effective.

From Arthur C. Brooks at The Atlantic:
Read the whole story.

Note: At the time of this posting The Atlantic offers five free article views per month.


This site may contain links to articles or other information that may be contained on a third-party website. Advisory Services Network, LLC and MAP Strategic Wealth Advisors are not responsible for and do not control, adopt, or endorse any content contained on any third party website. The information and material contained in linked articles is of a general nature and is intended for educational purposes only. Links to articles do not constitute a recommendation or a solicitation or offer of the purchase or sale of securities.