“The Psychology of Human Misjudgment”

Munger cites FedEx as one of his favorite examples on the power of incentives:  The heart and soul of the integrity of the system is that all the packages have to be shifted rapidly in one central location each night. And the system has no integrity if the whole shift can’t be done fast. And Federal Express had one hell of a time getting the t... See more

Charlie Munger, Warren Buffett’s late and longtime business partner, once said, “Show me the incentive and I'll show you the outcome.