Podcast & Book Reviews

December 7, 2023

Podcast Review | Charlie Munger: 24 Standard Causes of Human Misjudgement by Investor Center

Podcast Review | Charlie Munger: 24 Standard Causes of Human Misjudgement by Investor Center

With the extremely sad news of the passing of Charlie Munger, Vice Chairman of Berkshire Hathaway, its worth taking a moment to reflect on some of the lessons he has shared and one of the greatest speeches he has given (in my honest opinion) was in 1995 to an audience at Harvard University on biases. The 24 standard causes of human misjudgement, goes for 75 minutes where, Mr Munger dives into the framework for decision making and a provides an in depth look at a long list of biases. The wisdom and insights are not just for the investing world but applicable for anyone in making better decisions.

Below is the list of biases Mr Munger covers:

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

Link to Podcast

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