Timeless wisdom from Charlie Munger

Charlie Munger is the partner of Warren Buffett and the Vice Chairman of Berkshire Hathaway. Munger is often credited for changing Buffett's investment approach right from buying cheap stocks trading at very low valuations to buying quality stocks trading at fair valuations. He is widely known for his superior thinking skills. In this article, we delve into some of the points that he discussed in his 1995 speech on the psychology of human misjudgment at Harvard Law School (https://bit.ly/3cUPHJQ). Power of incentives Incentives are a powerful tool to understand the outcomes of the situation. Describing its importance, Munger says, "Well, I think I've been in the top 5 per cent

This article was originally published on August 20, 2021.