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5.1 Narrative Fallacy and Hindsight Bias

In many situations in life, success is seen as reflection of hard work and failure viewed as a lack of effort. This video draws a distinction between skill and luck and introduces the important concepts of narrative fallacy and hindsight bias. In this discussion, we ask ourselves: How much of life is really just randomness?

5.2 Introduction to Randomness in Finance

Finance is one area in which randomness plays a major role. Those who are very successful employ certain strategies and skills but also benefit from luck. This video discusses the dangers of hindsight bias and narrative fallacy in relation to investing money.

5.3 How Should We Invest in the Stock Market?

This video continues the discussion of finance. The Efficient Market Hypothesis is introduced and used to explain the returns that investors receive from the stock market. The market is unpredictable, but smartly investing in stocks can still be beneficial.