Behavioral Psychology

How to Specifically Implement Charlie Munger's Advice on "Multiple Mental Simulations"? Hey, I'm a Munger fan and have practiced many of his ideas in investing and decision-making.

Why Does Charlie Munger Place Such Importance on "Slow Thinking"? Charlie Munger's emphasis on "slow thinking" is deeply rooted in his profound understanding of human cognitive limitations and decisio...

"Smart People Also Do Stupid Things": Charlie Munger's In-Depth Analysis Charlie Munger does not view the seemingly paradoxical phenomenon of "smart people doing stupid things" as a rare accident, but...

How Does Charlie Munger View the Impact of Social Media on Investment Behavior? While Charlie Munger never systematically elaborated at length specifically on the topic of "social media," based on the...

Charlie Munger believes that the root of "gambling-style investing" (or speculation) does not stem from rational calculation, but is deeply embedded in powerful, innate, and often subconscious psychol...

The Root of Charlie Munger's Polarizing Views on Nobel Laureates in Economics: Divergent Approaches to "Human Nature" Charlie Munger's starkly divided opinions on Nobel laureates in economics stem fro...

Charlie Munger's Original Contributions to Behavioral Finance Charlie Munger was not a traditional academic researcher but rather a master practitioner who integrated multidisciplinary wisdom—especial...

How Does Charlie Munger Judge Market Timing Based on "Greed and Fear"? Charlie Munger's approach to judging market timing through "greed and fear" does not rely on complex technical indicators or prec...

Charlie Munger's View on Emotion-Driven Stock Market Predictions Charlie Munger holds an attitude of utter contempt and complete dismissal towards emotion-driven stock market predictions.

Why Does Munger Oppose Relying on Intuition for Decision-Making? Charlie Munger strongly opposes relying on intuition for decision-making primarily because of his profound insight into the inherent, s...

Charlie Munger's Core Reason for Emphasizing Dissenting Views: Combating Cognitive Biases to Pursue Objective Rationality Charlie Munger repeatedly emphasized the importance of seeking out, understand...

How Does Charlie Munger Use Institutional Design to Overcome Psychological Biases? Charlie Munger deeply understands human irrationality. He believes that merely recognizing the existence of psycholog...

Charlie Munger deeply understood that humans are highly susceptible to various cognitive biases in decision-making, and these "human frailties" are the primary root causes of investment and business f...

Does Munger Believe Education Can Fully Overcome Cognitive Biases? Core Answer: No. Charlie Munger does not believe education can completely overcome cognitive biases.

How Overconfidence Destroys an Investor? Charlie Munger's Answer Charlie Munger believes that Overconfidence Tendency is one of the primary psychological biases leading to major misjudgments in humans...

Charlie Munger on Confirmation Bias: The Number One Villain That Must Be Destroyed in Investing Charlie Munger views "Confirmation Bias" as one of the most destructive tendencies in human thinking, pa...

How Does "Loss Aversion" Psychology Affect Investment Decisions? What Are Charlie Munger's Insights? I. What is "Loss Aversion"? Loss Aversion is a core concept in behavioral economics, proposed by p...

The core reason why Charlie Munger repeatedly emphasizes avoiding extreme emotions is that extreme emotions are the archenemy of rationality. They directly trigger and amplify various cognitive biases...

Under Charlie Munger's psychological framework, the "Social-Proof Tendency" is one of the key biases leading to irrational behavior and poor decision-making.

The Exploitation of Reciprocity Bias in Sales and Politics "Reciprocity Bias," a key psychological tendency highlighted by Charlie Munger in Poor Charlie's Almanack, refers to a deeply ingrained behav...