Is there anything left on your bucket list?

The speaker reflects on their current desires and how they have changed over time.

Reflection on changing desires

• The speaker, who is old and weak compared to when they were 96, no longer wants to catch a 200 lb tuna due to the physical strength required.

• They mention that in the past, they would have paid any amount to catch a 200 lb tuna but never had the opportunity.

Charlie Munger's passing and famous quote

The speaker discusses Charlie Munger's passing and one of his famous quotes.

Charlie Munger's passing

• The speaker mentions that Charlie Munger has passed away at the age of 99.

• They acknowledge that he may not be well-known among social media influencers or YouTube viewers.

Famous quote by Charlie Munger

• The speaker shares one of Charlie Munger's famous quotes: "The first $100,000 is a bitch, but you gotta do it."

• They explain that this quote inspired them to save their first $100,000 in their 20s.

Sharing Charlie Munger's biggest failures

Instead of focusing on Charlie Munger's accomplishments, the speaker chooses to share his biggest failures or human misjudgments.

Human misjudgments

• The speaker explains that Charlie Munger referred to his biggest failures as human misjudgments.

• These misjudgments are mistakes that all humans make frequently.

• Charlie Munger dedicated a significant portion of his life to understanding these mistakes and avoiding them.

• He believed that these mistakes were the main reason for his financial success.

Condensed version of Charlie Munger's 25 principles

The speaker provides a condensed version of Charlie Munger's 25 principles that they try to live by.

Principles for success

• The speaker mentions that Charlie Munger gave a speech in 1994 at Harvard where he shared his 25 principles.

• They provide a condensed version of these principles that have helped them save and make their first $100,000.

Incentive caused bias and examples

The speaker discusses the concept of incentive caused bias and provides examples.

Incentive caused bias

• Humans respond strongly to incentives, such as being paid more for better performance.

• However, incentive caused bias occurs when short-term gain outweighs long-term gain, leading to unethical behavior or poor decision-making.

• An example is Wells Fargo employees opening fake accounts to meet quotas set by management.

Liking, disliking, and doubt avoidance tendencies

The speaker explains three tendencies identified by Charlie Munger: liking tendency, disliking tendency, and doubt avoidance tendency.

Liking tendency

• When we like someone or something, we tend to overlook their faults.

• This can lead to biased decision-making in investments or relationships.

Disliking tendency

• Disliking someone or something can also lead to biased decision-making.

• It's important to be objective and not let personal biases cloud judgment in investments.

Doubt avoidance tendency

• Humans have a natural inclination to remove doubt quickly due to evolutionary reasons.

• However, this can lead to hasty decisions during market crashes or uncertain times in investing.

Consistency avoidance and curiosity tendencies

The speaker discusses two more tendencies identified by Charlie Munger: inconsistency avoidance tendency and curiosity tendency.

Inconsistency avoidance tendency

• Humans tend to prefer consistency, even if it may not be beneficial.

• This can prevent individuals from trying new things or taking risks due to fear of being inconsistent with their perceived identity.

Curiosity tendency

• Curiosity is generally seen as a positive trait, but it can also lead to negative outcomes.

• The speaker shares their personal experience of experimenting with topics outside their usual content on YouTube for short-term benefits but potentially compromising long-term credibility.

Fairness and envy tendencies

The speaker explains the fairness tendency and envy tendency identified by Charlie Munger.

Fairness tendency

• Treating others the way you want to be treated is a principle that leads to a better society.

• In business, companies that pay employees more than necessary demonstrate fairness in the long run.

Envy tendency

• Humans have an innate desire for what others have, especially when resources were scarce in evolutionary times.

• However, letting envy drive decision-making can lead to poor choices in investments or personal life.

Reciprocation Tendency

Humans have a tendency to be pleasers and return good favors more than harm. This can be weaponized against us in business negotiation and marketing.

Reciprocation Tendency

• Humans tend to be pleasers and prefer returning good favors over harm.

• This tendency can be exploited in business negotiation and marketing.

• Feeling guilty can lead to agreeing to things we don't want to do.

• Taking time before speaking and learning how to say no can help overcome this tendency.

Influence from Mere Association Tendency

Our association with certain words or concepts can influence our behavior, such as being more generous when called generous. This also applies to pricing perception.

Influence from Mere Association Tendency

• Our association with certain words or concepts can influence our behavior.

• Being called generous may lead us to give more money.

• Higher prices often create the perception of better quality.

• Gambling behavior is influenced by the belief that past wins will continue.

Simple Pain-Avoiding Psychological Denial

We tend to avoid facing painful truths by denying their existence. This denial can impact our decision-making, especially in the stock market.

Simple Pain-Avoiding Psychological Denial

• People tend to avoid facing painful truths by denying their existence.

• In the stock market, fear of investing may lead someone to believe it's all rigged.

• Losses may be rationalized as a reason to keep going instead of facing reality.

Excessive Self-regard Tendency

We tend to overestimate the value of what is ours, whether it's our ideas, possessions, or abilities. This can lead to irrational behavior in the stock market.

Excessive Self-regard Tendency

• We tend to overestimate the value of what is ours.

• This applies to our ideas, possessions, and abilities.

• In the stock market, people may try to become day traders or time the market despite evidence against it.

Over-optimism Tendency

We are overly optimistic about our chances of success. This tendency leads happy people to gamble their money instead of making calculated decisions.

Over-optimism Tendency

• We are overly optimistic about our chances of success.

• Happy people tend to gamble their money instead of making rational choices.

• Using mathematical calculations can help us assess the low probability of winning.

Deprival Super-reaction Tendency

Winning feels less good than losing feels bad. When we're close to winning but miss out, we feel as though we've won and are more likely to continue gambling or investing.

Deprival Super-reaction Tendency

• Winning feels less good than losing feels bad.

• Being close to winning but missing out creates a feeling of having won.

• Slot machines exploit this tendency by making players feel like they almost won.

• Awareness of this tendency is crucial when it comes to investing.

Social Proof Tendency

Humans have a tendency to follow others and feel comfortable doing what they see others do. This makes it challenging to be a contrarian investor.

Social Proof Tendency

• Humans have a tendency to follow others' behavior.

• People feel comfortable doing what they see others do.

• Being a contrarian investor goes against this tendency.

• Recognizing this flaw in human logic can be advantageous for making investment decisions.

Contrast Misreaction Tendency

Our perception of wins and losses can be influenced by contrasting experiences. This is often used against us in negotiation and sales tactics.

Contrast Misreaction Tendency

• Our perception of wins and losses can be influenced by contrasting experiences.

• Negotiators may offer a lower amount than expected, making a compromise feel like a win.

• Real estate agents use contrast misreaction to make overpriced properties seem more reasonable.

Availability Misweighing Tendency

Recent events are given more importance than past events. This tendency can lead to overlooking valuable opportunities or overemphasizing recent failures.

Availability Misweighing Tendency

• Recent events are given more importance than past events.

• Investors may avoid investing in houses after the 2008 housing crisis due to its recent impact.

• Overemphasizing recent events can lead to missed opportunities and skewed decision-making.

Use It or Lose It Tendency

Consistency and practice are essential for maintaining skills. If we don't consistently practice what we've learned, we risk losing those skills.

Use It or Lose It Tendency

• Consistency and practice are crucial for maintaining skills.

• If we don't regularly practice what we've learned, we may lose those skills over time.

Authority Tendency

Humans tend to put too much faith in authority figures. This can have both positive and negative consequences throughout history.

Authority Tendency

• Humans tend to put excessive faith in authority figures.

• The impact of this tendency can vary throughout history.

• It is important to critically evaluate the authority and not blindly follow.

The remaining sections of the transcript were not provided.

Understanding Twaddle Tendency and Puffery in Real Estate

In this section, Charlie Munger discusses the concept of "twaddle tendency" and its relation to puffery in real estate.

Twaddle Tendency and Puffery

• Twaddle tendency refers to the inclination towards BS or meaningless talk.

• In real estate, there is a legal term called "puffery" which allows for some exaggeration in marketing. For example, a house listing may claim that the property is located in the fastest-growing community in the USA.

• Charlie emphasizes the importance of recognizing twaddle and puffery to differentiate between facts and marketing tactics.

The Power of Giving Reasons

This section explores how human beings are more likely to comply with something if they are given a reason.

Respecting Tendency

• Human beings tend to be more inclined to go along with something if they are provided with a reason.

• Teachers who give reasons for why it's important to learn certain topics often have a greater impact on students' learning.

• However, this tendency can also be used against us. Charlie gives an example of someone cutting in line at an office by simply stating that they need to copy some papers. Despite having the same reason as others waiting, their chances of being allowed to cut ahead increase significantly.

The Impact of Multiple Psychological Tendencies

This section highlights how multiple psychological tendencies can lead to extreme outcomes, both in investing and life.

Laapoa Tendency

• When multiple psychological tendencies are present simultaneously, it can result in extreme outcomes.

• This applies not only to investing but also various aspects of life.

• Charlie encourages viewers to check out the original video for incredible stories and specific examples of these tendencies.

Acknowledging Charlie Munger's Contributions

This section expresses gratitude towards Charlie Munger for his contributions and inspiration.

Appreciation for Charlie Munger

• The note-taker expresses gratitude towards Charlie Munger for his accomplishments in life and the people he has inspired.

• A tribute is given to Charlie, wishing him peace and expressing anticipation for future encounters.

Pretending vs. Deserving in Business School

This section discusses the importance of pretending to do things "their way" while in business school, but also emphasizes the need to eventually deserve success.

Pretending vs. Deserving

• While in business school, it may be necessary to pretend to do things "their way" until one graduates.

• However, it is crucial to eventually deserve success by developing genuine skills and abilities.

• The note-taker poses a question about why people often fail to understand this concept.

Optimism, Earnings, and Inflation

This section touches on optimism, earnings, inflation, and deserving what you want in life.

Optimism and Earnings

• Despite nearing the end of his life, Charlie remains optimistic about life.

• He mentions substituting the phrase "earnings" whenever encountering the word "eida" in presentations.

• The note-taker reflects on their own optimism compared to Charlie's perspective.

Importance of Fiscal Virtue and Undeserving Rewards

This section highlights the significance of fiscal virtue and avoiding rewarding undeserving individuals.

Fiscal Virtue and Undeserving Rewards

• Many people desire fiscal virtue, but the world is not ready to reward everyone yet.

• An analogy is made to a motion picture executive's funeral, where everyone attended to ensure he was truly dead.

• The note-taker acknowledges that there are more important things in life than wealth.

Learning and Competing Against Idiots

This section emphasizes the importance of learning and competing against less competent individuals.

Learning and Competing

• Some people resist learning, but it is evident that derivative accounting in America is highly flawed.

• Competency is relative, and many individuals need to compete against less competent counterparts to succeed.

• The note-taker shares their perspective on multitasking and cryptocurrencies.

Business Casualty Insurance and Money Management

This section discusses business casualty insurance, money management, and the challenges faced in these areas.

Business Casualty Insurance and Money Management

• Business casualty insurance is a tough industry with temptations for stupidity similar to banking.

• Many people in money management pretend they can do things they actually can't, which Charlie finds problematic.

• The note-taker agrees with Charlie's viewpoint on compensation consultants.

Offending People and Disgusting Trading Practices

This section addresses offending people and expresses disgust towards certain trading practices.

Offending People and Disgusting Trading Practices

• Charlie acknowledges that he may have offended some individuals during his remarks.

• He expresses strong disapproval towards professional traders who engage in trading cryptocurrencies, comparing it to trading turds.

• The note-taker recalls a conversation with an individual from an investment bank regarding how they make money.

Formulaic Approaches and Resistance to Learning

This section discusses formulaic approaches, resistance to learning, and the flaws in derivative accounting.

Formulaic Approaches and Resistance to Learning

• Charlie does not use a formulaic approach and advises against relying on formulas.

• Some people are resistant to learning, even when it is evident that derivative accounting in America is severely flawed.

• The note-taker agrees with Charlie's perspective on the limitations of formulas and the importance of understanding.

The transcript provided does not contain any timestamps beyond 18 minutes and 2 seconds.