How can I avoid making the common errors of human judgment?
November 11, 2011 by Leave a Comment
Answer: Listen to Charlie Munger, Warren Buffet’s partner in Berkshire Hathaway, deliver this highly practical, well-illustrated lecture on the psychology of human misjudgment:
In 1995, Charlie Munger addressed students at the Harvard Law School on the issue of psychology of human misjudgement. The lecture is a real treasure!
THE PSYCHOLOGY OF HUMAN MISJUDGMENT
(When the page opens, click on the audio link.)
To access the transcript of the lecture, click here.
And click here to read an essay Charlie Munger wrote around the same time entitled Turning $2 Million Into $2 Trillion where he explains how Coca-Cola has put known psychological principles to good use to create a business success phenomenon (and how Coca Cola would have been even more successful if they had avoided some of the common errors of misjudgment).
What are the common cognitive biases and logic fallacies I probably suffer from without realizing?
November 9, 2011 by Leave a Comment
Answer: There are heaps of these — maybe a hundred or so? Watch these videos to learn about some of them.
A fun song introduction to the common cognitive biases:
This video uses someone’s short speech to illustrate several common biases:
This video explains how we are biased towards seeing patterns and order where none exists:
This video explains how we are biased towards living in the pleasurable present rather than working towards a sensible future:
