A false analogy is a type of fallacy that assumes that because things are similar in one respect that they are similar in other respects. Analogy is a powerful tool of thought that can be used to solve problems and make decisions. In most cases, analogies are heuristics that aren't completely accurate but are useful nonetheless. A false analogy is inaccurate to the point of being misleading.
The stock market is just like gambling.
(stocks are generally not a zero-sum game)---The stock market is just like chess(markets can be win-win)---Risk management is like the brakes in a car.(risk management doesn't necessarily slow down a business, in fact it tends to improve results)---Investing in a capital intensive firm with a high cost of capital is like jumping off a cliff.(it is possible to survive jumping off a cliff)
This is the complete list of articles we have written about cognitive biases.
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