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Cognitive Biases
Cognitive Biases

Cognitive Biases

  • Quick Intro
  • Charlie Munger’s List Of 25 Cognitive Biases
  • Understand Buying Biases
  • Fundamental Attribution Error
  • Top Books Related To Investing
  • Navigate Other Mental Models On Super Thinking

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

Buying Biases (Click round knobs to go deeper)

Curiosity Tendency ✓ Classical Conditioning ✓ 1. Advertisement (Capture attention) ✓ 2. Funnel (Educate & build trust) ✓ 3. The Sale (Exchange product &am...

Buying Biases (Click round knobs to go deeper)

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.

Read more in my article:

Fundamental Attribution Error: This Cognitive Bias Destroys Relationships

Author Note: This is the first in a series that will give short summaries of the most useful and universal mental models in the world. Follow our Accelerated Intelligence publication if you'd like to...

Fundamental Attribution Error: This Cognitive Bias Destroys Relationships

Top Books Related To Investing

Mastering the Market Cycle: Getting the Odds on Your Side

Amazon.com: Mastering the Market Cycle: Getting the Odds on Your Side (Audible Audio Edition): Howard Marks, LJ Ganser, Howard Marks, Audible Studios: Books

Mastering the Market Cycle: Getting the Odds on Your Side
Market Wizards: Interviews with Top Traders

Market Wizards: Interviews with Top Traders - Kindle edition by Schwager, Jack D.. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Market Wizards: Interviews with Top Traders.

Market Wizards: Interviews with Top Traders
The Most Important Thing: Uncommon Sense for the Thoughtful Investor (Columbia Business School Publishing)

Amazon.com: The Most Important Thing: Uncommon Sense for the Thoughtful Investor (Columbia Business School Publishing) eBook : Marks, Howard: Kindle Store

The Most Important Thing: Uncommon Sense for the Thoughtful Investor (Columbia Business School Publishing)
The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success - Kindle edition by Thorndike, William. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success.

The Outsiders: Eight Unconventional CEOs and Their Radically Rational Blueprint for Success
Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail - Kindle edition by Dalio, Ray. Download it once and read it on your Kindle device, PC, phones or tablets. Use features like bookmarks, note taking and highlighting while reading Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail.

Principles for Dealing with the Changing World Order: Why Nations Succeed and Fail

Navigate Other Mental Models On Super Thinking