Summary of The Wisdom of Crowds

Looking for the book?
We have the summary! Get the key insights in just 10 minutes.

The Wisdom of Crowds book summary
Start getting smarter:
or see our plans

Rating

9 Overall

7 Applicability

8 Innovation

9 Style

Recommendation

This well-written bestseller explores the apparent anomaly that crowds of nonexperts seem to be collectively smarter than individual experts or even small groups of experts. This basic insight is at the heart of contemporary financial investment theory, with its emphasis on the difficulty of outguessing the market. Beginning with British scientist Francis Galton’s remarkable discovery in 1906 that a crowd of nonexperts proved surprisingly competent at guessing the weight of an ox, financial columnist and author James Surowiecki skillfully recounts experiments, discoveries and anecdotes that demonstrate productive group thinking. The concept does not come as news to anyone reasonably well read in modern financial literature, but getAbstract recommends this comprehensive, fresh presentation.

In this summary, you will learn

  • Why large groups of people seem to be better than experts when it comes to forecasts, valuation and other tasks;
  • How scientists prove that crowds are wise; and
  • Why it matters.
 

About the Author

James Surowiecki is a staff writer at The New Yorker, which publishes his popular business column, "The Financial Page."

 

Summary

The Weight of an Ox
In 1906, scientist Francis Galton discovered something remarkable in a very nonscientific setting: the West of England Fat Stock and Poultry Exhibition. Galton had spent his career studying human characteristics, work that left him convinced that the only way to ensure...

Get the key points from this book in 10 minutes.

For you

Find the right subscription plan for you.

For your company

We help you build a culture of continuous learning.

 or log in

Comment on this summary

More on this topic

Customers who read this summary also read

More by category