Sign up to save your podcasts
Or
Share Charlie Munger: The Psychology of Human Misjudgment [Outliers]
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
Charlie Munger: The Psychology of Human Misjudgment [Outliers]
Charlie Munger spent his life studying one question: why do smart people make bad decisions?
In his legendary talk The Psychology of Human Misjudgement, Munger outlined 25 psychological tendencies that quietly distort how we think.
From incentives and social proof to denial, envy, and authority bias, you’ll learn how these hidden tendencies shape behavior and how to build the mental defenses that helped Munger create one of the best decision records in history.
You’ll hear practical examples, powerful antidotes, and lessons you can apply to business, investing, and everyday life.
-----
Chapters:
(00:00) Introduction:
(01:38) Pattern #1: Reward and Punishment Superresponse Tendency
(05:00) Pattern #2: Liking/Loving Tendency
(08:38) Pattern #3: Disliking/Hating Tendency
(11:48) Pattern #4: Doubt-Avoidance Tendency
(14:19) Pattern #5: Inconsistency-Avoidance Tendency
(20:08) Pattern #6: Curiosity Tendency
(21:30) Pattern #7: Kantian Fairness Tendency
(23:32) Pattern #8: Envy/Jealousy Tendency
(27:32) Pattern #9: Reciprocation Tendency
(31:52) Pattern #10: Influence-from-Mere-Association Tendency
(35:43) Pattern #11: Simple, Pain-Avoiding Psychological Denial
(37:53) Pattern #12: Excessive Self-Regard Tendency
(41:06) Pattern #13: Overoptimism Tendency
(42:11) Pattern #14: Deprival-Superreaction Tendency
(45:28) Pattern #15: Social-Proof Tendency
(48:56) Pattern #16: Contrast-Misreaction Tendency
(51:33) Pattern #17: Stress-Influence Tendency
(54:20) Pattern #18: Availability-Misweighing Tendency
(54:54) Pattern #19: Use-It-or-Lose-It Tendency
(56:26) Pattern #20: Drug-Misinfluence Tendency
(57:23) Pattern #21: Senescence-Misinfluence Tendency
(58:42) Pattern #22: Authority-Misinfluence Tendency
(01:01:58) Pattern #23: Twaddle Tendency
(01:04:18) Pattern #24: Reason-Respecting Tendency
(01:06:42) Pattern #25: Lollapalooza Tendency
(01:10:28) Epilogue
-----
I published the full updated version on fs.blog with his permission, we are the only website to my knowledge that had his personal permission to post it.
-----
Upgrade: Get hand-edited transcripts and an ad-free experience, and so much more. Learn more @ fs.blog/membership
------
Newsletter: The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. See what you're missing: fs.blog/newsletter
------
Follow Shane Parrish
X @ShaneAParrish
Insta @farnamstreet
LinkedIn Shane Parrish
------
This episode is for informational purposes only.
Learn more about your ad choices. Visit megaphone.fm/adchoices
View all episodes
By Shane Parrish
4.7
25572,557 ratings
Charlie Munger spent his life studying one question: why do smart people make bad decisions?
In his legendary talk The Psychology of Human Misjudgement, Munger outlined 25 psychological tendencies that quietly distort how we think.
From incentives and social proof to denial, envy, and authority bias, you’ll learn how these hidden tendencies shape behavior and how to build the mental defenses that helped Munger create one of the best decision records in history.
You’ll hear practical examples, powerful antidotes, and lessons you can apply to business, investing, and everyday life.
-----
Chapters:
(00:00) Introduction:
(01:38) Pattern #1: Reward and Punishment Superresponse Tendency
(05:00) Pattern #2: Liking/Loving Tendency
(08:38) Pattern #3: Disliking/Hating Tendency
(11:48) Pattern #4: Doubt-Avoidance Tendency
(14:19) Pattern #5: Inconsistency-Avoidance Tendency
(20:08) Pattern #6: Curiosity Tendency
(21:30) Pattern #7: Kantian Fairness Tendency
(23:32) Pattern #8: Envy/Jealousy Tendency
(27:32) Pattern #9: Reciprocation Tendency
(31:52) Pattern #10: Influence-from-Mere-Association Tendency
(35:43) Pattern #11: Simple, Pain-Avoiding Psychological Denial
(37:53) Pattern #12: Excessive Self-Regard Tendency
(41:06) Pattern #13: Overoptimism Tendency
(42:11) Pattern #14: Deprival-Superreaction Tendency
(45:28) Pattern #15: Social-Proof Tendency
(48:56) Pattern #16: Contrast-Misreaction Tendency
(51:33) Pattern #17: Stress-Influence Tendency
(54:20) Pattern #18: Availability-Misweighing Tendency
(54:54) Pattern #19: Use-It-or-Lose-It Tendency
(56:26) Pattern #20: Drug-Misinfluence Tendency
(57:23) Pattern #21: Senescence-Misinfluence Tendency
(58:42) Pattern #22: Authority-Misinfluence Tendency
(01:01:58) Pattern #23: Twaddle Tendency
(01:04:18) Pattern #24: Reason-Respecting Tendency
(01:06:42) Pattern #25: Lollapalooza Tendency
(01:10:28) Epilogue
-----
I published the full updated version on fs.blog with his permission, we are the only website to my knowledge that had his personal permission to post it.
-----
Upgrade: Get hand-edited transcripts and an ad-free experience, and so much more. Learn more @ fs.blog/membership
------
Newsletter: The Brain Food newsletter delivers actionable insights and thoughtful ideas every Sunday. It takes 5 minutes to read, and it’s completely free. See what you're missing: fs.blog/newsletter
------
Follow Shane Parrish
X @ShaneAParrish
Insta @farnamstreet
LinkedIn Shane Parrish
------
This episode is for informational purposes only.
Learn more about your ad choices. Visit megaphone.fm/adchoices
More shows like The Knowledge Project
View all
The Tim Ferriss Show
16,106 Listeners
Masters in Business
2,177 Listeners
The a16z Show
1,084 Listeners
Invest Like the Best with Patrick O'Shaughnessy
2,343 Listeners
Founders
2,160 Listeners
Capital Allocators – Inside the Institutional Investment Industry
801 Listeners
Masters of Scale
3,985 Listeners
Naval
2,128 Listeners
Value Investing with Legends
213 Listeners
All-In with Chamath, Jason, Sacks & Friedberg
9,855 Listeners
Dwarkesh Podcast
507 Listeners
The Memo by Howard Marks
429 Listeners
Business Breakdowns
352 Listeners
The Morgan Housel Podcast
989 Listeners
David Senra
134 Listeners