The Psychology of Human Misjudgement
An animated video of Mr. Munger speaking about the framework for decision making and the factors contributing to misjudgements.
In 1995, Charlie Munger, American investor, businessman, and philanthropist, gave a speech about how the human mind tricks itself into making poor decisions. This is an abridged and animated version of that speech.
Topics Discussed Include:
- Psychological Denial
- Agency Cost
- Consistency & Commitment Tendency
- Pavlovian Association
- Reciprocation Tendency
- Social Proof
- Contrast-Caused Distortion
- Over-Influence By Authority
- Deprival Super-Reaction Syndrome
- Envy Jealousy
- Chemical Dependency
- Misgambling Compulsion
- Liking Distortion
- Other Normal Limitations Of Sensation
- Memory, Cognition & Knowledge
- Stress Induced Mental Changes
Speech by Charlie Munger on the psychology of human misjudgement given to an audience at Harvard University circa Jun 1995.
Listen to the full unabridged audio here: The Psychology of Human Misjudgement – Charlie Munger Full Speech