Cognitive Biases
Cognitive Biases

Cognitive Biases

Quick Intro

We humans have evolved over tens of thousands of years in an environment that is very different than the one we live in now. During this evolution process, we developed unconscious biases, which helped us survive in those tough environments, but can hinder us in today’s modern society.

By recognizing those biases and applying them to our decision-making, we can make infinitely better decisions.

Below, you can find links to some of the most important cognitive biases that influence our thinking, and also the thinking of people we are connected with personally or professionally.

Charlie Munger’s List Of 25 Cognitive Biases

It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying, `It’s the strong swimmers who drown.—Charlie Munger

Over his 70-year career, Charlie Munger (Warren Buffett’s long-time business partner) has done exactly this. The end result is the list of 25 psychological biases that cause us to make bad decisions, which we excerpted and condensed from several of Munger’s speeches.

You can view this list and start getting familiar with the biases below.

Understand Buying Biases

Fundamental Attribution Error

The Fundamental Attribution Error states that when we try to explain other people’s bad behavior, we tend to overemphasize their personality and underemphasize the situation they were in. This leaves people feeling unappreciated and destroys relationships.

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