The Psychology of Human Misjudgment (Illustrated)

This eBook is a beautifully illustrated version of The Psychology of Human Misjudgment.

The Psychology of Human Misjudgment is considered the magnum opus on why we behave the way we do.

In the run-up to publishing Poor Charlies Almanack, Charlie Munger remarked that “The Psychology of Human Misjudgment” could use “a little revising” to bring it in line with his most current views on the subject.

Charlie’s “little” revision would amount to a full-scale rewrite, with loads of new material, and a “stop-the-press” completion schedule. The talk features Charlie’s original concept of “behavioral finance,” which has now burgeoned into its own academic field of study.

Charlie also addresses the importance of recognizing patterns to determine how humans behave, both rationally and irrationally. He shares with us his checklist of twenty-five standard causes of human misjudgment, which contains observations that are ingenious, counterintuitive, and important—values Charlie treasures in the work of other great thinkers throughout history. He also emphasizes the “lollapalooza” power of psychological misjudgments in combination.