"Why can not economics be an action? What if you do not act? "
Warren Buffett's long-time business partner, Charlie Morgue, is a question raised to Harvard's audience.
Buffett became famous for his advice on becoming rich, and he is more interested in spreading the idea that psychology and economic decision-making are linked.
He suggested that people have 24 psychological tendencies when making decisions. He suggests raising awareness of these trends, making better judgments and doing informed business.
Of the twenty-four trends, the mocking emphasized the following three trends.
The first is prejudice from envy and jealousy. "I have heard Warren say many times that 'moving the world is not greed but envy,'" said Mulder.
"These two feelings appear in stage 2 of the ten commandments and are common to all. A big man with his brothers and sisters, a person at a law firm, a person who invests in a bank or real estate. "
The second is a delusional belief. Mokge explained that mere psychological rejection that occurs when distorting reality to endure a painful experience causes terrible problems.
He told the story of a friend 's family. The son of the house was a good athlete.
"He never flew back to the North Atlantic and never came back, and his mother, who was a perfectly mature woman, never believed that he was dead," said the mocker.
Finally, it is judging people with a narrow perspective. Mokers warned that they like distortion.
He added, "In particular, I tend to be misled by people who like their own, tend to like people who are their peers, and like their structure of thought."