my-notes

The Psychology of Human Misjudgement - Charlie Munger Full Speech

  1. 2:55
    • the power of incentives
    • “man with hammer syndrome” - to the man with a hammer every problem tends to look pretty much like a nail
  2. 6:10
    • simple psychological denial: reality is too painful to bear, so you just distort it until it’s bearable (we all do that at some extent)
    • that’s one of the psychological misjudgement that causes terrible problems
  3. 6:55
    • agency cost: too trusting advisors who don’t know more than you
    • tbh I didn’t understand the examples very well (language barrier)
  4. 10:20
    • bias from consistency and commitment tendency (including the tendency to avoid or promptly resolve cognitive dissonance)/ self-confirmation tendency (hard to change your mind once emotionally committed to an idea)
    • human mind is similar to an human egg. Human egg has a shutoff device so when sperm gets in it shuts down so the next one can’t get in. The human mind has a big tendency of the same sort.
  5. ???

  6. 12:30
    • bias from pavlovian association / past correlation for decision making
    • pavlov biology?
  7. 19:50
    • bias from reciprocation tendency (including the tendency of one on a role to act as other persons expect)
    • also not sure if I understood the examples (language barrier)
  8. 23:03 - continue here https://youtu.be/pqzcCfUglws?t=1383