What's up everyone? Welcome back to another episode of Founders Journal. My personal diary made public for the world. I'm Alex Lieberman, co-founder and executive chairman of Morning Brew.

On November 28th, 2023, Charlie Munger died at the age of 99.

Charlie was Warren Buffett's partner at Berkshire Hathaway for 45 years after the two met

years earlier at a diner in Omaha, Nebraska, and they actually worked together

as teenagers at Buffett's grocery store.

Beyond being one of the greatest value investors of all time, Charlie Munger was often considered to be the behind the scene's voice of reason

for his more public counterpart Buffett, and many admired him for his lattice work of mental

models or human psychological tendencies that he developed

through which he looked at the world. If you want to go deep into the mind of Charlie Munger,

I highly suggest that you read Poor Charlie's Almanac, which is a 548 page profile of Charlie's life and lessons.

And if you want to understand what informed so many of Charlie's views,

I would explore the life of Benjamin Franklin Franklin who Charlie considered to be one of his greatest teachers.

Today, I'm going to focus on one specific text that was written by Munger.

In 1995, Charlie gave a speech called The Psychology of Human Misjudgment, which contains 25 psychological tendencies by humans that can lead to bad decision-making and bad outcomes.

In 2005, he wrote down a revised version of the speech which I read this past weekend.

The speech is 52 pages of pure gold filled with timeless lessons that can be applied to life, relationships, and business.

My goal with this episode is to share my 13 favorite misjudgments

and provide examples of how they impact your abilities and success as an entrepreneur.

Let's hop into it. I'm going to approach each of my favorite human tendencies in the same way.

I'm going to share the tendency, what it refers to, possibly an interesting story or example to illustrate it further, and an example of the

tendency in a business context. So let's start going down the list. Number one of 13.

Number one is Inversion. This is probably the most famous mongarism. The typical way we as humans approach

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