Bayesian Investor Blog

This book is a colorful explanation of why we are less successful at finding happiness than we expect. It shows many similarities between mistakes we make in foreseeing how happy we will be and mistakes we make in perceiving the present or remembering the past. That makes it easy to see that those errors are natural results of shortcuts our minds take to minimize the amount of data that our imagination needs to process (e.g. filling in our imagination with guesses as our mind does with the blind spot in our eye).
One of the most important types of biases is what he calls presentism (a term he borrows from historians and extends to deal with forecasting). When we imagine the past or future, our minds often employ mental mechanisms that were originally adapted to perceive the present, and we retain biases to give more weight to immediate perceptions than to what we imagine. That leads to mistakes such as letting our opinions of how much food we should buy be overly influenced by how hungry we are now, or Wilbur Wright’s claim in 1901 that “Man will not fly for 50 years.”
This is more than just a book about happiness. It gives me a broad understanding of human biases that I hope to apply to other areas (e.g. it has given me some clues about how I might improve my approach to stock market speculation).
But it’s more likely that the book’s style will make you happy than that the knowledge in it will cause you to use the best evidence available (i.e. observations of what makes others happy) when choosing actions to make yourself happy. Instead, you will probably continue to overestimate your ability to predict what will make you happy and overestimate the uniqueness that you think makes the experience of others irrelevant to your own pursuit of happiness.
I highly recommend the book.
Some drawbacks:
His analysis of memetic pressures that cause false beliefs about happiness to propagate is unconvincing. He seems to want a very simple theory, but I doubt the result is powerful enough to explain the extent of the myths. A full explanation would probably require the same kind of detailed analysis of biases that the rest of the book contains.
He leaves the impression that he thinks he’s explained most of the problems with achieving happiness, when he probably hasn’t done that (it’s unlikely any single book could).
He presents lots of experimental results, but he doesn’t present the kind of evidence needed to prove that presentism is a consistent problem across a wide range of domains.
He fails to indicate how well he follows his own advice. For instance, does he have any evidence that writing a book like this makes the author happy?