Would you take financial advice from a lottery winner?

Obviously not, right?

What advice could possibly benefit you if the person lost thousands, possibly tens of thousands of dollars before lucking out and striking it rich?

Finance articles are littered with survivor bias — something important to know when facing a barrage of unsolicited advice from nobodies suggesting what to do with your money because it “worked” for them. Chances are it doesn’t work, or at least consistently enough without requiring the same degree of luck, and you’re just being lined up to pad the pockets of the backers of such articles looking for a quick pump and dump.

You never see articles or suggestions from the millions of failures that followed the same lines of speculative thinking.

For an entertaining exposition of how survivor bias impairs people’s judgment (and how manipulators profit from it, like finance writers), watch “The System” from “mentalist” Derren Brown:

 

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