"Hyperbolic discounting describes the tendency people have to **prefer a smaller reward that will come sooner rather than a larger reward that can come later**. For example, even if it is logical to prefer to get $100 in a year rather than $50 immediately, the majority of people would choose the $50 immediately. This is because of how we humans are wired naturally and a significant effort has to be applied to eliminate such a bias. This bias is not uncommon to the investing environment." ([Location 3524](https://readwise.io/to_kindle?action=open&asin=B07CNFFJ9J&location=3524)) --- **Tags** -- [[quotes]], [[long-term-thinking]], [[net-present-value]], [[hyperbolic-discounting]], [[value-investing]] **Source** -- [[202506221723 - LN - Modern Value Investing]]