Charlie Mungers Top 25

Question 1

2

Liking/Loving Tendency

Answer 1

H

Question 2

3

Disliking/Hating Tendency

Answer 2

G

Question 3

4

Doubt-Avoidance Tendency

Answer 3

J

Question 4

5

Inconsistency-Avoidance Tendency

Answer 4

I

Question 5

6

Curiosity Tendency

Answer 5

Y

Question 6

7

Kantian Fairness Tendency

Answer 6

I

Question 7

8

Envy-Jealousy Tendency

Answer 7

U

Question 8

9

Reciprocation Tendency

Answer 8

H

Question 9

10

Influence-from-Mere Association Tendency

Answer 9

G

Question 10

11

Simple, Pain-Avoidance Psychological Denial

Answer 10

Y

Question 11

12

Excessive Self-Regard Tendency

Answer 11

Y

Question 12

13

Overoptimism Tendency

Answer 12

T

Question 13

14

Deprival Super Reaction Tendency

Answer 13

B

Question 14

15

Social-Proof Tendency

Answer 14

H

Question 15

16

Contrast-Misreaction Tendency

Answer 15

H

Question 16

17

Stress-Influence Tendency

Answer 16

I

Question 17

18

Availability-Misweighing Tendency

Answer 17

J

Question 18

19

Use-It-or-Lose-It Tendency

Answer 18

H

Question 19

20

Drug-Misinfluence Tendency

Answer 19

G

Question 20

21

Senescence-Misinfluence Tendency

Answer 20

H

Question 21

22

Authority-Misinfluence Tendency

Answer 21

G

Question 22

23

Twaddle Tendency

Answer 22

H

Question 23

24

Reason-Respecting Tendency

Answer 23

G

Question 24

25

Lollapalooza Tendency

Answer 24

The Tendency to Get Extreme Confluences of Psychological Tendencies acting in Favor of a Particular Outcome

Question 25

1

Reward and Punishment Super response Tendency

Answer 25

“If you are to persuade, appeal to interest and not to reason.” Never, ever, think of something else when you should be thinking about the power of incentives. Perhaps the most important rule in management is “Get the incentives right.”

“Repeat behavior that works.” Prompt rewards work much better than delayed rewards. Once behavior is established, random distribution keeps behavior in place the longest.