Monday, October 08, 2007

Success Secrets: Munger's "Misjudgment" Part 3

This post is Part 3 of of my examination of Charlie Munger’s “Psychology of Human Misjudgment”.

Part 1

Part 2

7. Munger’s Descriptor: Kantian Fairness Tendency
Alternate descriptor: People in civil societies often behave as they would like others to behave toward them.

Munger notes that this behavior appears to have become much more common after Kant formulated his “Categorical Imperative” . The implication (to my mind) is that human reason can have a civilizing effect.

8. Munger Descriptor:Envy/Jealousy Tendency

Alternate Descriptor: Jealousy and envy are stronger today than we allow ourselves to believe.

This is the “500 pound gorilla in the room” kind of trait that no one talks about, although, as Munger reminds us, it is screamingly apparent in families, universities, and all manner of professional firms. We ignore this trait at our peril.

9. Munger Descriptor: Reciprocation Tendency
Alternate descriptor: Tendency to reciprocate both favors and harm .

Expect reciprocation for favors awarded and for perceived harm done. Feuds can be endless and last for generations. “Turning the other cheek” may be unnatural, and even dangerous, especially in advanced cultures that should want to protect themselves from aggression.

The tendency to reciprocate can be both positive (helping to deepen the bonds of productive relationships) or negative (as when we are led to grant favors that should not be granted, because we have been granted a favor).



toughiee said...

thx for comments on my blog...

Actually for investing legends, remaining a student throughout their life is an achievement in itself.

So they are never short of humility.
As a saying goes "not everyone regards humility as a virtue"

But the same humilty creates wonders in investment.


Manny said...

Thanks for your comment. Your blog is extremely highly regarded and I am delighted to hear from you. Regarding "being a student", Munger has said elsewhere that Buffett is reading and learning constantly. As I have mentioned before on this blog, a large number of CEOs and other sucessful people are voracious readers. I look forward to reading more of your excellent writings.