Daniel Kahneman won the Nobel Prize for proving we're not as rational as we think. In this timeless conversation we discuss how to think clearly in a world full of noise, the invisible forces that cloud our judgement, and why more information doesn't equal better thinking. Kahneman also reveals the mental model he discovered at 22 that still guides elite teams today. Approximate timestamps: (00:36) – Episode Introduction (05:37) – Daniel Kahneman on Childhood and Early Psychology (12:44) – Influences and Career Path (15:32) – Working with Amos Tversky (17:20) – Happiness vs. Life Satisfaction (21:04) – Changing Behavior: Myths and Realities (24:38) – Psychological Forces Behind Behavior (28:02) – Understanding Motivation and Situational Forces (30:45) – Situational Awareness and Clear Thinking (34:11) – Intuition, Judgment, and Algorithms (39:33) – Improving Decision-Making with Structured Processes (43:26) – Organizational Thinking and Dissent (46:00) – Judgment Quality and Biases (50:12) – Teaching Negotiation Through Understanding (52:14) – Procedures That Elevate Group Thinking (55:30) – Recording and Reviewing Decisions (57:58) – The Concept of Noise in Decision-Making (01:01:14) – Reducing Noise and Improving Accuracy (01:04:09) – Replication Crisis and Changing Beliefs (01:08:21) – Why Psychologists Overestimate Their Hypotheses (01:12:20) – Closing Thoughts and Gratitude Thanks to MINT MOBILE for sponsoring this episode: Get this new customer offer and your 3-month Unlimited wireless plan for just 15 bucks a month at MINTMOBILE.com/KNOWLEDGEPROJECT. Newsletter - The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. Learn more and sign up at fs.blog/newsletter Upgrade — If you want to hear my thoughts and reflections at the end of the episode, join our membership: fs.blog/membership and get your own private feed. Watch on YouTube: @tkppodcast Photograph: Richard Saker/The Guardian Follow Shane Parrish X @ShaneAParrish Insta @farnamstreet LinkedIn Shane Parrish Learn more about your ad choices. Visit megaphone.fm/adchoices
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Delay your intuition. Don't try to form an intuition quickly, which is what we normally do. Focus on the separate points. And then when you have the whole profile, then you can have an intuition and it's going to be better.
Welcome to The Knowledge Project. I'm your host, Shane Parish. In a world where knowledge is power, this podcast is your toolkit for mastering the best of what other people have already figured out, so you can use their insights in your life. Before we get into the interview, I want to tell you about a moment that didn't make it into the episode.
I first came across Daniel Kahneman's work in the early 2000s. His impact on me and so many people around the globe has been unbelievable. By the time I sat down with him in his New York City home in 2019, I had so many questions for him. Kahneman won a Nobel Prize in economic sciences in 2002, yet he never took an economics course. His central message was very simple.
If we want to make better decisions, we need help. Danny died last year on March 27th, 2024. He was 90. This conversation is now one of the final opportunities to hear directly from one of the most influential thinkers of our time. I get messages about this episode every week. People come away with new insights on everything from life to decision-making.
I re-listened to it recently, and it's timeless. That's exactly why I'm republishing it. Consider loss aversion, one of his most important discoveries. Why does losing $100 hurt twice as much as gaining $100 feels good? The asymmetry affects everything. It affects your stock portfolio, your golf game. Check your portfolio when it's down, and you'll start making emotional decisions.
A golfer putts better for power than for birdie. But here's what happened near the end of our interview. Danny's phone rang and it was loud. He'd forgot to turn it off. And we're almost done the interview at this point, but he answered. And someone obviously wanted him to give a talk or review a book. He ended the call with words that have stayed with me since then.
My rule is I never say yes on the phone. I'll get back to you tomorrow.
i wanted to discuss that on air but we ran out of time as i packed up my gear i asked him about that this rule was a trick to avoid saying yes intuitively it gave him time to think he's always bombarded with requests and he often says yes when he didn't want to at first he would try saying no that date doesn't work that timeline doesn't work but what happened in those moments was it turned into a negotiation what about another date another timeline so he hit on this rule
And to me, this is his most practical discovery. Most people don't even know about it. This rule lets you reprogram your unconscious mind. Your desired behavior becomes your default behavior. And that's incredibly powerful. It changed my life. I now exercise every day. It's actually easier than three times a week. The activity duration and scope can change, but working out and exercising doesn't.
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