(Volume 1, Issue 6)
Topic of the week: Biases and human tendencies
Charlie Munger, Vice Chairman of Berkshire Hathaway, has delivered several public lectures on human biases. His lectures titled "psychology of human misjudgment" have been summarized in this document widely available online and the video below.
The ability to recognize these tendencies is a useful mental model for day-to-day experiences, and, as Munger puts it, to avoid being a "one legged man in an ass kicking contest."
Quote of the week
“Do not suffer a sudden impression to overbear your judgment.” – Marcus Aurelius
Three recent articles
1. Morgan Housel, Partner of Collaborative Fund, discusses in "You Have to Live It to Believe It" the difference between intellectually and emotionally knowing, simplifying thought to action, and how biased our confidence can be.
2. In Principles and one of his series of LinkedIn posts, Ray Dalio discusses his principle that pain is a privelege and an opportunity for growth. Pain + Reflection = Progress.
3. In this posting, Ryan Holiday reminds us that Marcus Aurelius, who ran the largest empire in the world, has long ago shared a simple and effective strategy to handle stress and anxiety -- write down daily priorities, separate essential from non-essential, practice acceptance and keep perspective.