3. Hindsight bias
Hindsight Bias causes us to claim that “we knew it all along.”
In Short: Regardless of whether a decision does or doesn’t work out, Hindsight Bias causes us to tell ourselves that some part of us knew what was going to happen. Again, it’s a way of maintaining an inflated self-opinion — if we knew it was going to happen, we don’t have to think of ourselves as flawed.
For Example: At the annual horse races in Saratoga Springs, a neophyte bettor whimsically picks a long-shot horse based its comical name. When “David Hasselhoofs” unexpectedly beats the field by five lengths, Hindsight Bias makes him exclaim, “I KNEW that horse would win!”