DiscoverWe Study Billionaires - The Investor’s Podcast NetworkTIP571: Charlie Munger & The Psychology of Human Misjudgment
TIP571: Charlie Munger & The Psychology of Human Misjudgment

TIP571: Charlie Munger & The Psychology of Human Misjudgment

Update: 2023-08-186


Clay Finck reviews the 28 psychology of human misjudgments in Peter Bevelin’s book, Seeking Wisdom. One of the best ways to behave more rationally is to understanding our own shortcomings biologically which we are oftentimes unaware of. This episode dives deep into these shortcomings, and how we can sidestep them to invest more wisely.


0:00 - Intro

4:11 - Many of the human misjudgments that Charlie Munger has spoken about extensively.

4:34 - What bias by mere association is.

8:41 - How rewards and punishments influence our behavior.

14:51- How self-interest and incentives drive decision-making.

24:40 - The bias of self-deception and denial.

26:00 - The bias of being consistent with our prior actions.

30:11 - The status quo bias.

31:42 - How investors can exploit the tendency of humans to be incredibly impatient.

36:58 - The anchoring bias.

43:51 - What reciprocity is, and it’s effects on human behavior.

48:29 - The bias of social proof.

51:01 - How authority bias effects our investment decisions.

51:53 - How to combat our desire minimize uncertainty.

55:07 - Why the simple solution is oftentimes the best solution. 

Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.



P.S The Investor’s Podcast Network is excited to launch a subreddit devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit r/TheInvestorsPodcast today!


  • Invest in Bitcoin with confidence on River. It's the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.
  • If you’re aware you need to improve your bitcoin security but have been putting it off, Unchained Capital's Concierge Onboarding is a simple way to get started—sooner rather than later. Book your onboarding today and at checkout, get $50 off with the promo code FUNDAMENTALS.
  • Experience real language learning for real conversations with Babbel. Get 55% off your Babbel subscription today.
  • Reach the world’s largest audience with Linkedin, the place to B2B. Plus, enjoy a $100 credit on your next ad campaign!
  • Get a customized solution for all of your KPIs in one efficient system with one source of truth. Download NetSuite’s popular KPI Checklist, designed to give you consistently excellent performance for free.
  • Send, spend, and receive money around the world easily with Wise.
  • Beat FOMO and move faster than the market with AlphaSense.
  • Choose Toyota for your next vehicle - SUVs that are known for their reliability and longevity, making them a great investment. Plus, Toyotas now have more advanced technology than ever before, maximizing that investment with a comfortable and connected drive.
  • Be confident that you’ll be small businessing at your best with support designed to help you reach your goals. Book an appointment with a TD Small Business Specialist today.
  • Start, run, and grow your business without the struggle. Be in control of every sales channel with Shopify. Sign up for a $1 per month trial period today.
  • Return to the all-access world of the rich and powerful. Don’t miss new episodes of Billions streaming August 11th on the Paramount Plus with Showtime plan.
  • Look good and feel good with True Classic's range of summer essentials, crafted with premium quality fabrics at an accessible price. Get 25% off today with the code WSB.
  • Support our free podcast by supporting our sponsors.


Help us reach new listeners by leaving us a rating and review on Apple Podcasts! It takes less than 30 seconds, and really helps our show grow, which allows us to bring on even better guests for you all! Thank you – we really appreciate it!

See Privacy Policy at and California Privacy Notice at

In Channel
Download from Google Play
Download from App Store








Sleep Timer


End of Episode

5 Minutes

10 Minutes

15 Minutes

30 Minutes

45 Minutes

60 Minutes

120 Minutes

TIP571: Charlie Munger & The Psychology of Human Misjudgment

TIP571: Charlie Munger & The Psychology of Human Misjudgment