Standard Causes of Human Misjudgement
I really want EVERYONE to read this. It is about the standard causes of human misjudgement. They were written by Charlie Munger (vice chairman of Berkshire Hathaway). Read each one and carefully think about it. Think about Wealthy Affiliate, how you started and what you are doing now.
Here are some of his main points of the standard causes of human misjudgement:
1.The power of incentives or reinforcement.
2.Simple psychological denial.
3.Misconstruing past correlation as a reliable basis for decision-making.
4.Reciprocation tendency, including the tendency of one on a roll to act as other persons expect.
5.Lollapalooza: bias from over-influence by social proof – that is, the conclusions of others, particularly under conditions of natural uncertainty and stress.
6.Bias from contrast-caused distortions of sensation, perception and cognition.
7.Bias from over-influence by authority.
8.Bias from deprival super-reaction syndrome, including bias caused by present or threatened scarcity, including threatened removal of something almost possessed, but never possessed.
9.Bias from envy/jealousy.
10.Bias from chemical dependency.
11.Bias from mis-gambling compulsion.
12.Bias from liking distortion, including the tendency to especially like oneself, one’s own kind and one’s own idea structures, and the tendency to be especially susceptible to being misled by someone liked. Disliking distortion, bias from that, the reciprocal of liking distortion and the tendency not to learn appropriately from someone disliked.
13.Bias from the non-mathematical nature of the human brain in its natural state as it deals with probabilities employing crude heuristics, and is often misled by mere contrast, a tendency to overweigh conveniently available information and other psychologically misrouted thinking tendencies on this list.
14.Mental confusion caused by information not arrayed in the mind and theory structures, creating sound generalizations developed in response to the question “Why?” Also, mis-influence from information that apparently but not really answers the question “Why?” Also, failure to obtain deserved influence caused by not properly explaining why.
15.Stress-induced mental changes, small and large, temporary and permanent.
16.Development and organizational confusion from say-something syndrome.
Please take time to think about all these things that cause human misjudgement. Let me know if you have any questions or would like to start a civilized conversation about this.
Recent Comments
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Thanks for sharing this list, very helpful
Glad you found it helpful. You must be an intelligent individual.