The article discusses the pitfalls of relying on intuition in decision-making, particularly in finance. It highlights how intuitive behavior often leads individuals to repeat previous actions that may not necessarily yield positive outcomes. The concept of a 'return gap' in mutual funds illustrates how investors' instincts to sell low and buy high can adversely affect their returns. By understanding that intuition is a product of learned behavior and shortcuts, the article emphasizes the importance of combining research and expert insights to make more informed decisions instead of solely relying on gut feelings.
Intuition often makes us repeat what recently worked, not what works best.
Your brain substitutes familiar information when it lacks relevant data for decisions.
Even expert CEOs make costly mistakes when applying intuition beyond their training.
Research and expert consultation prevent gut feelings from leading to poor outcomes.
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