Charlie Munger: The Psychology of Human Misjudgement

Charlie Munger: The Psychology of Human Misjudgement

In 1995, Charlie Munger gave a speech about how the human mind tricks itself into making poor decisions. This is an abridged and animated version of that speech.

Listen to the full unabridged audio here:

Read the full transcript here:

A fun little passion project by Tiny ( with amazing animation by the team at Thinko (


June 23, 2017 / 21 Comments / by / in
  • The principles presented seem pretty basic, no new material. As a saying goes, if you don't stand for something, you'll fall for anything. For example, a principle is purchasing what I believe I need for a life and a comfortable life, not buying something just because it is on sale, or a sales person who seems like me tried to sell it to me.

  • Can someone please explain what "Agency cost" is? I'm having a really hard time understanding what he's saying. His speech or the audio is highly distorted. Subtitles would have been much appreciated instead of the distracting animation truth be told.

  • Seems to be a little bit 2 hacked up because the whole section on pavolonian tendency didn't make a whole lot of sense

  • 6:43. Ok… explain

  • 8:30
    It s not true

  • 10:50 actually it was a very vocal minority which took down New Coke. You had a largr group of people who really didn't care either way being influenced by another group of people who cared extremely much

  • From Pavlov to B.F. Skinner, this is what is being taught to the world by the so-called scientific psychologists, the behaviorists, that man is only behavior. There is no one inside, just as there is no one inside a machine. The machine is just a functional unity; it has no organic unity in it, it has no soul. You can dismantle it, you can rearrange it again.
    That's what scientists hope, that sooner or later they will be able to dismantle man and reassemble him. At least theoretically, it seems possible for them. It is not possible. You cannot dismantle and reassemble man, because there is something which is nonmechanical in man. And that nonmechanical part is his glory. But it is better to deny it; it makes life easier, it makes life less anxious, it makes life less of a problem. You can go on living the shallow day-to-day life of so-called pleasures — eat, drink and be merry.
    Those who decide for that are renouncing the opportunity Atisha is talking about. They are renouncing the opportunity to become gods. They are settling for something very low, they are settling for something very cheap, they are missing something very essential. Yes, you can be at ease with the lower self, you can settle with the doubting self. But then there is no growth. And there will be no ecstasy, because there will never be any buddha born in you. You will never come to know anything of christ-consciousness. You will remain in darkness — of course at ease, but what is the point of being at ease?
    Far more valuable is creative discontent, far more valuable is the insecurity of the unknown, far more valuable is a homeless wandering in search of the real home.
    Religion is for those who don't accept the lower as the be all and end all. I am not saying deny the lower, remember, because there are foolish people who go to the other extreme. One stupid type of people denies the higher, says it does not exist, and settles with the lower. The other stupid kind denies the lower, says there is no lower, there is only the higher. One says God is illusion, the world is truth. The other says the world is illusion, God is truth.
    In my approach, both are being stupid, because both are doing the same thing. Both want to be at ease; both are denying the polar opposite, both are denying the possibility of any inner tension. And remember, it is the inner tension that gives you aliveness. And the bigger the tension, the more alive you are.
    You know, you have experienced it. Everybody has experienced it, more or less — the attraction of the opposite. A man is attracted to a woman, and vice versa — why? The negative pole of electricity is attracted towards the positive pole, and vice versa — why? Why the attraction for the opposite? Because in that very attraction, life arises. In that tension, how can you remain dead? In that very tension you start pulsating.
    Those who settle and choose one against the other become stale, become dead. The materialist becomes superficial, and your so-called spiritualist also becomes phony. Your so-called materialist lives with shallow pleasures, and your so-called spiritualist lives in imagination, in fantasy. Both are missing life and its life-giving tensions. Man has to live with both, and in such a way that neither is denied and yet both become complementary to each other. Yes need not be against no; there is no necessity that the no should be against the yes. They can define each other, they can nourish each other.

  • Great video

  • shitty quality audio, you need to re-narrate it… thumbs down for poor content and lack of effort.

  • WTF is wrong with the voice of this person. Couldn't get anyone else with a better voice? Or dub / voice-over?

  • Terrible audio. Inaudible.

  • This is largely based on the work of Cialdini.

  • lower level understanding….probably popular with the self absorbed….excellent video for those who wish to exploit others.

  • The end part about Pavlov's dogs shows that one can reprogram their mind by appropriate stresses (challenges).

  • Bahahahahaha. We can tell you never took an upper level biological psychology or philosophy course , never considered experimental sciences. Comparing sperm and egg with human reason. Stating the obvious observation of human experience under the filter of acquiring wealth?

  • Have people lost common sense? yes.

  • He plays the game by his own private rules, states the obvious, and continues the facade of success through wealth?

    Wisdom reveals that seeking riches for riches is empty. This is envy. Being wealthy is not inherently unfulfilling.

  • Oversimplification of complexity is fraudulent in itself.

  • Charlie Munger is proof of being molded in the image of your peers. If you close your eyes Munger sounds like Buffett and vice versa….down to the pauses, sound, and the intonation of his voice. I've heard Mr. Buffett speak many times, but this is the first time I've heard Mr. Munger speak….the voice is one and the same…scary.

  • I find myself with no comment's

  • This man is all over the place

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