AUDIENCE MEMBER 00:07
Charlie, thank you very much for having us today and sharing your wisdom and your beliefs.
I was hoping that you might share with us some examples of how you use disconfirming evidence to change some of your important, determinedly held beliefs.
CHARLIE MUNGER 00:22
Well, of course being able to recognize when you’re wrong is a godsend. If you take —
A good bit of the Munger fortune came from liquidating things we originally purchased because we were wrong. Of course you have to learn to change your mind when you’re wrong.
And I actually work at trying to discard beliefs. And most people just try and cherish whatever idiotic notion they already have because they think it’s their notion that must be good. I think, of course you must be reexamining what you previously thought particularly when disconfirming evidence comes through.
And there’s hardly anything more important than being rational or objective. Just think of all the dumb things you can do in life.
Think of the brilliant people who are just utterly brilliant who do some of the dumbest things. You won’t have any trouble thinking of examples.
In fact, most of us can think of our own accident the last year or two and we can all pull up an example or two. It’s hard to be rational.