'The hardest part is admitting your own stupidity' — What is Charlie Munger's advice on cognitive updating?

What Does Munger Mean by "The Hardest Thing Is to Admit Your Own Stupidity"?

Hey, I’m a big fan of reading Munger’s books and speeches. As Buffett’s legendary partner, that old man always cuts straight to the point. This quote is Munger’s way of reminding us that the toughest part is admitting we’ve been foolish—yet that’s precisely the key to updating our thinking. Simply put: don’t assume you’re always right. Learn to ditch old ideas and embrace new evidence. Who hasn’t made mistakes? Like stubbornly holding onto a lousy stock instead of cutting losses, only to lose more. Munger’s advice helps us dodge these pitfalls and make smarter decisions. Below, I’ll break down his core ideas in plain language—no jargon.

1. Start by Admitting You Might Be Wrong

Munger says our brains are wired for self-deception. We treat our opinions as gospel—a trap called "confirmation bias," where we ignore evidence that contradicts our views.
His fix: Ask yourself daily, "Where could I be wrong?" For example, if you’re bullish on a stock but see bad news, don’t dismiss it. Ask, "What if I’m mistaken?" I’ve used this to avoid impulsive investments.
Why’s it hard? Admitting stupidity bruises the ego. But Munger believes it’s the first step toward growth. As he puts it: "If you can’t change your mind, you can’t make progress."

2. Use "Inversion" to Upgrade Your Thinking

Munger’s secret weapon: "Invert, always invert." Don’t just aim for success—first imagine how to fail.
Example: Considering a property investment? Don’t just fantasize about profits. List all ways it could flop—economic downturns, market bubbles, etc. This exposes blind spots.
Works for daily decisions too. Think your project plan is flawless? Scrutinize it from a failure angle to spot weaknesses. Munger credits this for dodging countless investment landmines.

3. Build "Universal Wisdom" Through Diverse Learning

Munger draws from psychology, biology, history—not just finance. He calls this "multiple mental models": using different lenses to avoid narrow thinking.
Advice: Don’t just read finance books. Study behavioral psychology (e.g., Daniel Kahneman) to understand mental tricks. Munger recommends Influence and Poor Charlie’s Almanack for real-world case studies.
My experience: It felt scattered at first, but over time, my decisions became more flexible—less "go with your gut," more multi-angle analysis.

4. Don’t Let Emotions and Biases Hijack You

Munger lists common decision traps: herd mentality (following crowds) and anchoring (over-relying on first impressions).
His antidote: Stay humble. Debate your ideas with sharp minds—like how he and Buffett challenge each other.
Try this: Before deciding, write down your assumptions. Then ask friends to poke holes in them. Awkward? Yes. But better than regret.

Ultimately, Munger’s philosophy is this: Updating your thinking isn’t a one-time fix—practice it daily like brushing your teeth. Admitting stupidity isn’t weakness; it’s a smart person’s superpower. Use these tools in investing or life, and you’ll dodge detours and gain more. I’ve benefited hugely—I used to obsess over sunk costs, but now I "let go" and make better calls. If you’re curious, start with his down-to-earth speeches. Questions? Let’s keep talking!