The Psychology of Human Misjudgment

[kazukirai]

Posted for reading and thinking pleasure. Let's discuss real-life examples too! (Full transcript of his speech can be found here)

1. Reward and Punishment Superresponse Tendency
2. Liking/Loving Tendency
3. Disliking/Hating Tendency
4. Doubt-Avoidance Tendency
5. Inconsistency-Avoidance Tendency
6. Curiosity Tendency
7. Kantian Fairness Tendency
8. Envy/Jealousy Tendency
9. Reciprocation Tendency
10. Influence-from-Mere Association Tendency
11. Simple, Pain-Avoiding Psychological Denial
12. Excessive Self-Regard Tendency
13. Overoptimism Tendency
14. Deprival Superreaction Tendency
15. Social-Proof Tendency
16. Contrast-Misreaction Tendency
17. Stress-Influence Tendency
18. Availability-Misweighing Tendency
19. Use-It-or-Lose-It Tendency
20. Drug-Misinfluence Tendency
21. Senescence-Misinfluence Tendency
22. Authority-Misinfluence Tendency
23. Twaddle Tendency
24. Reason-Respecting Tendency
25. Lollapalooza Tendency – The Tendency to Get Extreme Confluences of Psychological Tendencies Acting in Favor of a Particular Outcome

[bluechipstamp]

There's a more complete version of this in the book "Poor Charlie's Almanack".

Charlie got a fair bit of inspiration from Cialdini's book "Influence: The Psychology of Persuasion". He was so impressed with Cialdini that he gave him a share of Berkshire as a gift.

[kazukirai]

There's a more complete version of this in the book "Poor Charlie's Almanack".

Charlie got a fair bit of inspiration from Cialdini's book "Influence: The Psychology of Persuasion". He was so impressed with Cialdini that he gave him a share of Berkshire as a gift.

Further info.

The version of the speech in the 3rd and latest edition of Poor Charlie's Almanack is a re-written version. It has a lot more as a preface to this original speech which might make things clearer.

The version that I linked above is a transcripted version which is I believed abridged from his original talk.

My two cents is to get Poor Charlie's Almanack. It makes nice reading and also has a list of other influences of Charlie Munger (most notably Benjamin Franklin) and must-reads. Otherwise, it could always end up on your coffee table and generate some talking points among your guests.

[Wildreamz]

Charlie Munger: The Psychology of Human Misjudgement

Abridged:



Full: https://youtu.be/zNxsAhc6sk8

Full Transcript:
http://web.archive.org/web/2015100420074...c/16_1.pdf

Embedded so that it is more accessible to more people. It was really helpful to me.

Perhaps it should be relocated at the "Interview with Gurus" section?