Why Survivorship Bias Makes Terrible Advice

We have hit on biases, heuristics, and fallacies before, and will continue on the topic with this post to discuss a very specific form of survivorship bias…the advice giving market.

It is full of survivorship bias.

Take 100 midwits trying 100 different random strategies and a few will outperform over any period of time. These ‘outperforming’ strategies then become accepted as the mainstream advice. This is called survivorship bias & recency bias. And basing your financial future on what has worked recently is a fool’s game.