Charlie Munger - 24 Standard Causes of Human Misjudgment in 15 minutes

24 Standard Causes of Human Misjudgment according to Charlie Munger:
0:04 1. Under-recognition of the power of incentives
0:34 2. Simple psychological denial
1:05 3. Incentive-caused bias
1:48 4. & 5. Bias from consistency and commitment tendency
2:53 6. Bias from Pavlovian association (misconstruing past correlation as a reliable basis for decision making)
4:33 7. Bias from reciprocation tendency, including the tendency of one on a roll to act as other persons expect
5:52 8. Bias from over-influence by social proof (the conclusions of others)
6:45 9. Bias from contrast caused distortions of sensation, perception and cognition
7:59 10. Bias from over-influence by authority
8:26 11. Bias from deprival super reaction syndrome, including bias caused by present or threatened scarcity, including threatened removal of something almost possessed but never possessed
8:52 12. Bias from envy/jealousy
9:24 13. Bias from chemical dependency
9:40 14. Bias from mis-gambling compulsion
10:17 15. Bias from liking distortion
10:30 16. Bias from disliking distortion
10:40 17. Man with a hammer syndrome
12:04 18. Bias from the non-mathematical nature of the human brain in its natural state as it deals with probabilities employing crude heuristics
13:51 19. Bias from over-influence by extra vivid evidence
14:30 20. Mental confusion caused by information not arrayed in the mind and theory structures creating sound generalizations, developed in response to the question why
14:56 21. Other normal limitations of sensation, memory, cognition and knowledge
15:01 22. Stress-induced mental changes
15:32 23. Other common mental illnesses and declines, temporary and permanent
15:36 24. Say-something syndrome
Charlie Munger shared this list with us in his speech on the Psychology of Human Misjudgment, given at Harvard University in 1995.

This audio clip was taken and edited from the following video:

©The Wisdom Wire

[dee]

Love that you summarized it with the real audio! Great job!

[EH-stsd]

This is gold. Thank you very much for creating this presentation.

[demorcy]

amazing to listen to, great condensed material.

[MrGlobalxD]

Thank you very much, you sum it up very well! Maybe it's too short at least for me...

[stevealexander]

The statement of the 24 items are not very clear or specific. It seems like more of a laundry-list, with overlaps and no cohesive themes or groupings.

[nateisright]

I didn’t know before watching this that Charlie Munger was a marksman.

[pdxeddie]

Munger is sharp as a tack even though he's old as dirt he's smarter than me at his age than me when I was young guess I should've kept those Berk shares LOL

[yordanoism]

Prolly not gone take em twice a week to the zoo cause they got things to do lol

[Jukeboksi]

Now start with seeing how many of these you can spot people using daily in their regular communication