Clay Finck reviews the 28 psychology of human misjudgments in Peter Bevelin’s book, Seeking Wisdom. One of the best ways to behave more rationally is to understanding our own shortcomings biologically which we are oftentimes unaware of. This episode dives deep into these shortcomings, and how we can sidestep them to invest more wisely.IN THIS EPISODE YOU’LL LEARN:0:00 - Intro4:11 - Many of the human misjudgments that Charlie Munger has spoken about extensively.4:34 - What bias by mere association is.8:41 - How rewards and punishments influence our behavior.14:51- How self-interest and incentives drive decision-making.24:40 - The bias of self-deception and denial.26:00 - The bias of being consistent with our prior actions.30:11 - The status quo bias.31:42 - How investors can exploit the tendency of humans to be incredibly impatient.36:58 - The anchoring bias.43:51 - What reciprocity is, and it’s effects on human behavior.48:29 - The bias of social proof.51:01 - How authority bias effects our investment decisions.51:53 - How to combat our desire minimize uncertainty.55:07 - Why the simple solution is oftentimes the best solution.&nbsp;Disclaimer: Slight discrepancies in the timestamps may occur due to podcast platform differences.BOOKS AND RESOURCES<ul><li>Check out our <a href="https://theinvestorspodcast.com/mastermind" rel="noopener noreferrer" target="_blank">TIP Mastermind Community</a>.</li><li>Peter Bevelin’s book: <a href="https://www.amazon.com/Seeking-Wisdom-Darwin-Munger-3rd/dp/1578644283?crid=33QQP1UH8ZJ3G&keywords=seeking+wisdom&qid=1691092536&sprefix=seeking+wisdom%2Caps%2C854&sr=8-3&linkCode=ll1&tag=tipnetwork-20&linkId=ca2b2e6f2ab562b92ca6b597208a19ad&language=en_US&ref_=as_li_ss_tl" rel="noopener noreferrer" target="_blank">Seeking Wisdom</a></li><li>Tune into our previous episode with <a href="https://link.chtbl.com/WSB566" rel="noopener noreferrer" target="_blank">Gautam Baid</a> or watch the video <a href="https://www.theinvestorspodcast.com/episodes/the-passionate-pursuit-of-lifelong-learning-w-gautam-baid/" rel="noopener noreferrer" target="_blank">here</a>.</li><li>Tune into our previous episode covering <a href="https://link.chtbl.com/WSB569" rel="noopener noreferrer" target="_blank">Chris Mayer's book, How Do You Know?</a> or watch the video <a href="https://www.theinvestorspodcast.com/episodes/an-investors-guide-to-clear-thinking-w-chris-mayer/" rel="noopener noreferrer" target="_blank">here</a>.</li><li>Check out our recent episode covering <a href="https://link.chtbl.com/WSB531" rel="noopener noreferrer" target="_blank">Mark Leonard's Letters and Constellation Software</a> or watch the video <a href="https://www.theinvestorspodcast.com/episodes/mark-leonard-the-best-capital-allocator-youve-never-heard-of/" rel="noopener noreferrer" target="_blank">here</a>.</li><li>Follow Clay on <a href="https://twitter.com/Clay_Finck" rel="noopener noreferrer" target="_blank">Twitter</a>.</li></ul>NEW TO THE SHOW?<ul><li>Check out our&nbsp;<a href="https://www.theinvestorspodcast.com/we-study-billionaires-starter-packs/" rel="noopener noreferrer" target="_blank">We Study Billionaires Starter Packs</a>.</li><li>Browse through all our episodes (complete with transcripts)&nbsp;<a href="https://www.theinvestorspodcast.com/we-study-billionaires/" rel="noopener noreferrer" target="_blank">here</a>.</li><li>Try our tool for picking stock winners and managing our portfolios:&nbsp;<a href="https://www.theinvestorspodcast.com/tip-finance/" rel="noopener noreferrer" target="_blank">TIP Finance Tool</a>.</li><li>Enjoy exclusive perks from our&nbsp;<a href="https://www.theinvestorspodcast.com/affiliates/" rel="noopener noreferrer" target="_blank">favorite Apps and Services</a>.</li><li>Stay up-to-date on financial markets and investing strategies through our daily newsletter,<a href="https://www.theinvestorspodcast.com/newsletters/" rel="noopener noreferrer" target="_blank">&nbsp;We Study Markets.</a></li><li>Learn how to better start, manage, and grow your business with the&nbsp;<a href="https://www.theinvestorspodcast.com/podcasts/20-best-business-podcasts/" rel="noopener noreferrer" target="_blank">best business podcasts</a>.P.S The Investor’s Podcast Network is excited to launch a&nbsp;<a href="https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ" rel="noopener noreferrer" target="_blank">subreddit</a>&nbsp;devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit&nbsp;<a href="https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ" rel="noopener noreferrer" target="_blank">r/TheInvestorsPodcast</a>&nbsp;today!</li></ul>P.S The Investor’s Podcast Network is excited to launch a&nbsp;<a href="https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ" rel="noopener noreferrer" target="_blank">subreddit</a>&nbsp;devoted to our fans in discussing financial markets, stock picks, questions for our hosts, and much more! Join our subreddit&nbsp;<a href="https://clicks.aweber.com/y/ct/?l=7HQTa&m=3hIUiG6T8vBkNOB&b=8NVZC.qh9__ur.qME8mcEQ" rel="noopener noreferrer" target="_blank">r/TheInvestorsPodcast</a>&nbsp;today!SPONSORS<ul><li>Invest in Bitcoin with confidence on&nbsp;<a href="https://river.com/" rel="noopener noreferrer" target="_blank">River</a>. It's the most secure way to buy Bitcoin with 100% full reserve custody and zero fees on recurring orders.</li><li>If you’re aware you need to improve your bitcoin security but have been putting it off,&nbsp;<a href="https://unchained.com/concierge" rel="noopener noreferrer" target="_blank">Unchained Capital</a>'s Concierge Onboarding is a simple way to get started—sooner rather than later. Book your onboarding today and at checkout, get $50 off with the promo code FUNDAMENTALS.</li><li>Experience real language learning for real conversations with&nbsp;<a href="https://babbel.com/wsb" rel="noopener noreferrer" target="_blank">Babbel</a>. Get 55% off your Babbel subscription today.</li><li>Reach the world’s largest audience with&nbsp;<a href="https://linkedin.com/results" rel="noopener noreferrer" target="_blank">Linkedin</a>, the place to B2B. 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