WorldlyInvest
WorldlyInvest Podcast
#2: Charlie Munger and the 25 Biases You Must Avoid
0:00
-33:08

#2: Charlie Munger and the 25 Biases You Must Avoid

From "The Psychology of Human Misjudgement"
DISCLAIMER: This episode was made with NotebookLM directly from the original sources. However, it may contain errors.
Please note that this episode is accompanied by an auto-generated transcript (and may also contain errors).
You can download the episode and listen to it wherever you want (yes, even if you're in space enjoying the view)

Hey, guys!

For the second episode of the podcast, I choosed the great Charlie Munger and the heuristics (biases) he teached us from The Psychology of Human Misjudgement, a lecture he gave back in 1995 to Harvard students.

These 25 biases causes us, the humans, to make poor decisions in business, investing and life.

So, be aware of them gonna help us make few "misjudgements" (hopefully).

Tendencies are probably much more good than bad. Otherwise, they wouldn’t be there, working pretty well for man, given his condition and his limited brain capacity. So the tendencies can’t be simply washed out automatically and shouldn’t be. … Tendency is not always destiny, and knowing the tendencies and their antidotes can often help prevent trouble that would otherwise occur.
—CHARLIE MUNGER

The 25 biases (tendencies, as Charlie calls them) mentioned in the episode are the following:

  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. Over-Optimism Tendency

  14. Deprival Super-Reaction Tendency (also called loss aversion)

  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


Loading...

Loading...

Discussion about this episode