Deprival Super-Reaction Syndrome And Investing. Part four of a short series on Charlie Munger’s Human Misjudgment Revisited.
- Charlie Munger On Avoiding Anchoring Bias
- Charlie Munger On The Power Of Prices
- The Munger Series - Learning From Charles Darwin
- Punch Card Investing Lessons from Charlie Munger
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In his Human Misjudgment speech, Charlie Munger discussed the deprival super-reaction syndrome, which in plain English is the tendency to be more influenced by minor decrements down than movements in the opposite direction. As Munger explains:
“People are really crazy about minor decrements down…People do not react symmetrically to loss and gain. Well maybe a great bridge player like Zeckhauser does, but that’s a trained response. Ordinary...
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