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Psychology of Human Misjudgement

karthis.blog · 360 words · saved by 1 readers

If there is one speech you should not miss, it is this one. I anyways wanted to include in the Human Nature series with full credit to Charlie Munger as it was an eye opener to me despite being a behavioural science student. If you don't have 75 minutes to spare, here is my 15 min summary (4632 words) of all 24 tendencies from Charlie's Harvard speech. The entire transcript of his speech is here. Munger dedicated his life to avoiding stupid mistakes. He believed that patterns of irrational behavior often lead to repeated mistakes. To avoid these, he sought to understand poor judgements across disciplines and then invert them. This process led him to pin point 24 standard tendencies that human beings are susceptible to and he calls it the Psychology of Human Misjudgement. Listen to him and decoding was hard work at first, probably because of my Indian origin. Slowly I got used to his way of articulation. Here is a quick breakdown. We tend to work towards rewards and avoid punishments. W

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