Survivorship Bias

Survivorship bias often gets discussed as a cautionary tale. For example, someone might point out a person’s or company’s success, and another will retort with, “But that’s just survivorship bias!”. People don’t often discuss how to internalize survivorship bias in an actionable way. In other words: if you know that most people who win the lottery in some fashion (whether in business, investing, dating, or even the actual lottery) did so mainly out of luck, it doesn’t answer the question of how we can use this information to our advantage.