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This is the place to nourish your mind, heart, body and soul.

Our Tendency to Misjudge

Our Tendency to Misjudge

Humans pride themselves on being rational creatures, capable of weighing evidence and making sound decisions. Yet, as history and experience keep reminding us, we are prone to repeated errors of judgment.

No one explained this better than Charlie Munger, vice-chairman of Berkshire Hathaway and long-time business partner of Warren Buffett.

Munger argued that most mistakes in judgment come not from ignorance of facts but from psychological tendencies that subtly distort how we interpret the world.

He identified 25 psychological biases and tendencies, compiled in his book "Poor Charlie's Almanack," to understand and avoid common patterns of human misjudgment. 

In his famous talk, “The Psychology of Human Misjudgment”, he explains several of these “misjudgments.”

By understanding them, we can become more aware of our blind spots, improve our decisions, and avoid traps that have cost individuals and organisations dearly.

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Think Like a Genius
Cognition, Mental Models, Leadership Dion Le Roux Cognition, Mental Models, Leadership Dion Le Roux

Think Like a Genius

In a world of complexity, how do some individuals consistently make brilliant decisions, solve challenging problems, and uncover insights others miss?

In this chaotic reality, some people seem to rise above it all. They see patterns others miss, solve problems elegantly, and make decisions that seem almost prescient.

Are they geniuses? Maybe.

But more often, they are people who have mastered the use of mental models.

Mental models are the tools of the mind, allowing us to “see the forest from the trees.” They help us zoom out, connect disparate ideas, and avoid cognitive traps.

They’re not rigid formulas but tools to help you simplify complexity, avoid common cognitive pitfalls, and think clearly. By learning and applying them, you can approach life’s challenges with the same clarity as the great thinkers of our time.

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