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"HALO EFFECT"

The halo effect is the tendency for positive impressions of a person, company, brand, or product in one area to positively influence one's opinion or feelings in other areas. The Halo effect is “the name given to the phenomenon whereby evaluators tend to be influenced by their previous judgments of performance or personality.” The halo effect which is a cognitive bias can prevent someone from accepting a person, a product, or a brand based on the idea of an unfounded belief on what is good or bad. 

      Generally, people always follow the herd as they want social proof(socially people recognize me or appreciate me). one of the great mental models by Nassim Nichols telab is alternative history(make some story after success). when interviewers ask why are you so successful then the person has some twaddle tendency ( person has to speak something), they will give you any emotional pitches by making alternative history. nobody knows that if they will follow that path step by step then they will succeed as life is not linear. Therefore, everyone has a different experience and different problems in their path. this type of thing always occurs in picking stock as people tend to find the next "Asian paints, HDFC bank", nobody knows before picking stocks that they will earn high CAGR and people always gives you an example of successful students or people but they don't understand the "base rate" behind success, for example when person win lottery from 1 in 100 then public follow that 1 person with a herd mentality, they are blind to see that 99 people who lost their money with just the following herd. this is useful in terms of finding your spouse, career, stocks, or anything. so the question is what should we do? 

      First, Avoiding big problems in the path is a great success, as Charlie Munger always says "All I want to know is where I am going to die so I will not go there" always think invert. if you want to become a good stock picker then think about how people fail to pick stocks then avoid that thing if you want a successful Career then think how can I make an unsuccessful career then avoid that, if you want to live a longer life then avoid early death and bad marriage or if you want to find good spouse then think what kind of girl will make your life misery then avoid that girl. secondly, you need to choose an enjoyable path, this is a path at which you are happy at your downside. Overall, thinking is the most important part of your life, people choose to die rather than think. your decision-making ability will make your life successful.

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