Charlie Munger’s Biases

Almost 20 years ago, Berkshire Hathaway (NYSE: BRK-B  ) vice-chairman Charlie Munger gave a talk called “The psychology of human misjudgment” at Harvard. He’s given dozens of talks since, but I don’t think any match its wisdom and usefulness. I recently came found the talk on video. You can listen to the whole thing here, and I highly encourage you to if you have an hour to spare. For the impatient, the talk discusses about 18 separate biases that cause people to fool themselves make bad decisions. I’ve summarized them here, along with a few comments from Munger. 1. Under-recognition […]

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