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Bonus Episode-The Psychology of Human Misjudgement-Charlie Munger

Berkshire Hathaway Annual Shareholder Meetings (since 1994)

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The Lao-Poleusa Effect

The one thing that causes the most trouble is when you combine a bunch of these together, you get this Lao-Poleusa effect. I think it would be just an automatic subject for research, but it doesn't seem to turn the psychology establishment on. That is a difference out of incentives from rising in an economic establishment where the reward system comes from being a truffle hound. It may be fine if you want new drugs or something. You want people stunted in a lot of different directions so they can grow in one narrow direction. But I don't think it's good teaching psychology,. In fact, I think it's terrible.

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