You’re not as rational as you think Smart people make dumb decisions all the time Charlie Munger explained why, and how to fix it Here's a thread on The Psychology of Human Misjudgement:

Charlie Munger spent decades studying why smart people make bad decisions. He identified 24 standard causes of human misjudgement. Let’s break down the most important ones:

1. Incentive Bias People do what they're rewarded to do. Not what’s right. Yes, even you. Never underestimate how powerful incentives are.

2. Denial When reality hurts, we lie to ourselves. "It's not that bad." "It can't be true." This leads to bad decisions and slow reactions.

3. Consistency Bias Once you take a stand, you defend it, even if it’s wrong. Especially if you said it out loud. Why? Because changing your mind feels like admitting you were stupid.

4. Social Proof We copy what others do, especially in uncertain situations. Example: In the 1960s, dozens of people watched a woman being murdered and no one helped. Why? Everyone else was just watching. So they did too.

5. Authority Bias If a person in power says something, we follow. Even if it’s clearly wrong. Like when co-pilots let planes crash because they didn’t question the pilot.

6. Liking Bias We believe and trust people we like. Even if they’re lying. Even if they’re wrong. Same goes for disliking, we reject ideas from people we don’t like.