One of Munger’s most famous quotes is simple: “Show me the...
Shane Parrish@shaneparrish
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Dec 14, 2025
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One of Munger’s most famous quotes is simple: “Show me the incentive and I’ll show you the outcome.”
Munger offered three antidotes for receiving advice from professionals.
1. “Especially fear professional advice when it is especially good for the advisor.”
2. “Learn and use the basic elements of your advisor’s trade as you deal with your advisor.”
3. “Double check, disbelieve, or replace much of what you’re told, to the degree that seems appropriate after objective thought.”
It's always worth asking what the incentives are when someone's behavior doesn't make sense to you.
Munger offered three antidotes for receiving advice from professionals.
1. “Especially fear professional advice when it is especially good for the advisor.”
2. “Learn and use the basic elements of your advisor’s trade as you deal with your advisor.”
3. “Double check, disbelieve, or replace much of what you’re told, to the degree that seems appropriate after objective thought.”
It's always worth asking what the incentives are when someone's behavior doesn't make sense to you.
Shane Parrish@shaneparrish
Why do smart people make bad decisions?
Charlie Munger discovered 25 tendencies sabotaging your judgment right now.
Here they are:
1. Reward and Punishment Superresponse Tendency
2. Liking/Loving Tendency
3. Disliking/Hating Tendency
4. Doubt-Avoidance Tendency
5. Inconsistency-Avoidance Tendency
6. Curiosity Tendency
7. Kantian Fairness Tendency
8. Envy/Jealousy Tendency
9. Reciprocation Tendency
10. Influence-from-Mere-Association Tendency
11. Simple, Pain-Avoiding Psychological Denial
12. Excessive Self-Regard Tendency
13. Overoptimism Tendency
14. Deprival-Superreaction Tendency
15. Social-Proof Tendency
16. Contrast-Misreaction Tendency
17. Stress-Influence Tendency
18. Availability-Misweighing Tendency
19. Use-It-or-Lose-It Tendency
20. Drug-Misinfluence Tendency
21. Senescence-Misinfluence Tendency
22. Authority-Misinfluence Tendency
23. Twaddle Tendency
24. Reason-Respecting Tendency
25. Lollapalooza Tendency—The Tendency to Get Extreme Consequences from Confluences of
Psychology Tendencies Acting in Favor of a Particular Outcome
Listen now "Charlie Munger and The Psychology of Human Misjudgement on The Knowledge Project"
Charlie Munger discovered 25 tendencies sabotaging your judgment right now.
Here they are:
1. Reward and Punishment Superresponse Tendency
2. Liking/Loving Tendency
3. Disliking/Hating Tendency
4. Doubt-Avoidance Tendency
5. Inconsistency-Avoidance Tendency
6. Curiosity Tendency
7. Kantian Fairness Tendency
8. Envy/Jealousy Tendency
9. Reciprocation Tendency
10. Influence-from-Mere-Association Tendency
11. Simple, Pain-Avoiding Psychological Denial
12. Excessive Self-Regard Tendency
13. Overoptimism Tendency
14. Deprival-Superreaction Tendency
15. Social-Proof Tendency
16. Contrast-Misreaction Tendency
17. Stress-Influence Tendency
18. Availability-Misweighing Tendency
19. Use-It-or-Lose-It Tendency
20. Drug-Misinfluence Tendency
21. Senescence-Misinfluence Tendency
22. Authority-Misinfluence Tendency
23. Twaddle Tendency
24. Reason-Respecting Tendency
25. Lollapalooza Tendency—The Tendency to Get Extreme Consequences from Confluences of
Psychology Tendencies Acting in Favor of a Particular Outcome
Listen now "Charlie Munger and The Psychology of Human Misjudgement on The Knowledge Project"