The Psychology of Human Misjudgment, by Charlie Munger

Well I think I've been in the top 5% of my age cohort all my life in understanding the power of incentives, and all my life I've underestimated it. And never a year passes, but I get some surprise that pushes my limit a little farther.

You may have noticed  students who just try to remember and pound back what is remembered. Well, they  fail in school and in life. You've got to hang experience on a latticework of models in  your head.  What are the models? Well, the first rule is that you've got to have multiple models—  because if you just have one or tw... See more