Munger's 25 Psychological Biases — Key Examples
💰
Reward/Punishment Superresponse Incentives dominate behaviour — people game any metric they are judged by.
❤️
Liking/Loving Tendency We favour people we like, distorting facts and ignoring their faults entirely.
👥
Social Proof Tendency We copy those around us, especially in uncertain situations — the herd instinct.
📰
Availability-Misweighing Tendency Vivid, recent events feel more probable than base rates actually support.
⚖️
Contrast Misreaction Tendency We judge value relative to nearby anchors, not absolute standards.
🕳️
Sunk Cost Tendency Past investment drives future decisions, trapping us in failing courses of action.