CHARLIE MUNGER 00:08
Now we come bias from over-influence by extra vivid evidence. Here’s one … I’m at least $30 million poorer as I sit here giving this little talk because I once bought 300 shares of a stock, and the guy called me back and said, “I got 1500 more.” I said, “Will you hold it for 15 minutes while I think about it?” In CEO of this company, I’ve seen a lot of vivid peculiarities in a long life, but this guy set a world record. I’m talking about the CEO, and I just mis-weighed it. The truth of the matter is his situation was foolproof. He was soon gonna be dead. I turned down the extra 1500 share, and it’s now cost me $30 million, and that’s life in the big city.
It wasn’t something where the stock was generally available, and so it’s very easy to mis-weigh the vivid evidence. Gutfreund did that when he looked into the man’s eyes and forgave the colleague.