2. Self-Serving Bias
Self-Serving Bias causes us to interpret good results as the result of skill, and bad results as the result of misfortune.
In Short: Self-Serving Bias is the cousin of Overconfidence Bias, in the sense that both depend on inflated opinions of oneself. Self-Serving Bias causes us to take credit for good results, but to shift blame for for bad results.
For Example: Imagine if you’d invested in Zoom two months before COVID-19 hit. You’d look like the most brilliant investor in the world — and, if you suffered from Self-Serving bias, you’d claim to be exactly that. What you’d actually have been was one of the most fortunate investors in the world. Big difference.
Next: Hindsight Bias