Summary of Snap Judgment

When to Trust Your Instincts, When to Ignore Them, and How to Avoid Making Big Mistakes with Your Money

FT Press, more...

Buy the book

Snap Judgment book summary
Are gut feelings the best way to pick a stock, a house or a racehorse? Think so? Think again. Why analysis beats instinct.

Rating

8 Overall

8 Applicability

7 Innovation

9 Style

Recommendation

From CEOs to private investors, people tend to place far too much emphasis on their own instincts when making decisions, even though the results are often disastrous. Behavioral economist David E. Adler examines why people make life-altering decisions based on intuition, habit, gut feelings, urges or snap judgments instead of using analytical reasoning, a far better tool for complex decision making. In this absorbing, eminently readable book, Adler offers many fascinating case histories that demonstrate the dangers of intuitive thinking. After weighing the evidence carefully, getAbstract finds that investors, managers and other decision makers will certainly benefit from reading his report.

In this summary, you will learn

  • Why human intuition developed
  • When it is and is not useful
  • Why behavioral economics says analytical reasoning is best for complex choices
 

Summary

Think Analytically, Not Viscerally
Using intuition in decision making works against your best interests. Most people would benefit from substituting logical analysis for reliance on gut instincts. Start by objectively evaluating any mistakes you may have made due to intuition. Take money...
Get the key points from this book in less than 10 minutes. Learn more about our products or log in

About the Author

David E. Adler writes for Financial Planning, and has been published in The New Republic, Barron’s and Psychology Today. He is studying wealth managers’ tax awareness under a Chartered Financial Analysts Institute Research Foundation grant.


Comment on this summary

More on this topic

Customers who read this summary also read

More by category