When we look back then past events look very obvious to us. But that was not as obvious as it looks now. People who know hindsight bias, also fall under the trap of it. So, the author has suggested us a way to handle it.
When we read any history book then feel that events that occurred were so obvious but living those moments are much difficult.
Business – If any businessman achieved success then he will look back in past and rate his probability of success much higher.
Investment – In 2007, everyone talks about the great growth potential of the economy and in 2017 also, post GST we will have a strong economy, we will post stronger economic growth. But when we look back to 2008 and recent GDP falls. It looks obvious to us.
So, when we have maintained records of our observations and decisions then we can track the quality of our decisions. We can look back on our decision and on what basis, we have taken a decision.
This entire series will be review with various examples from books which are “Thinking, Fast and Slow” and “The Art of Thinking Clearly“.