How could economics not be behavioral? If it isn't behavioral, what the hell is it?
Charlie MungerRead
No wise pilot, no matter how great his talent and experience, fails to use his checklist.
Interpretation
Even the most skilled individuals rely on systematic processes to ensure success.
Charlie Munger emphasizes the importance of preparation and the use of checklists in achieving success, regardless of oneβs experience or talent. This quote serves as a reminder that even the most competent people recognize the value of following structured methods to mitigate risks and enhance outcomes.
In practice
A business leader might use this quote during a team meeting to stress the importance of using checklists in project management.
How could economics not be behavioral? If it isn't behavioral, what the hell is it?
The world of derivatives is full of holes that very few people are really aware of. It's like hydrogen and oxygen sitting on the corner waiting for a little flame.
I believe in the discipline of mastering the best that other people have ever figured out. I don't believe in just sitting down and trying to dream it all up yourself. Nobody's that smart.
Economics is in many respects the queen of the soft sciences. It's expected to be better than the rest. It's my view that economics is better at the multi-disciplinary stuff than the rest of the soft science. And it's also my view that it's still lousy.
Look at this generation, with all of its electronic devices and multitasking. I will confidently predict less success than Warren, who just focused on reading.
Economics profession, they've been - they've been confident in various formulas, but economics is not physics. The same formula that works in one decade doesn't work in the next. Economics is a difficult subject.
Fear and guilt are your only enemies. Love and awareness are your true friends. Do not confuse one with the other, for one will kill you, while the other gives you life.
A famously wise old man in a village was once asked how he came by his wisdom. "I got it from my good judgment," he answered. And where did his good judgment come from? "I got it from my bad judgment."
But neither of us knows, because a fight's worth nothing if you know from the start that you're going to win it.
If you've been playing poker for half an hour and you still don't know who the patsy is, you're the patsy.
If you are an enemy to your own mind, other people have to become enemies too, sooner or later. Until you understand, until you can love the thoughts that appear in your mind, then you can love the rest of us. You work with the projector -the mind - not the projected world. I can't really love you until I question the mind that thinks it sees you outside itself . . .
If you attack a mathematical problem directly, very often you come to a dead end, nothing you do seems to work and you feel that if only you could peer round the corner there might be an easy solution. There is nothing like having somebody else beside you, because he can usually peer round the corner.
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