The Psychology of Human Misjudgment, by Charlie Munger

A full transcript of Charlie Munger's 2005 magnum opus on cognitive bias — the talk that effectively introduced "behavioral finance" as a field — published on Farnam Street with permission from Peter Kaufman and Munger himself. Munger walks through 25 standard causes of human misjudgment, from incentive-caused bias and reciprocation tendency to social-proof, deprival-superreaction, and authority-influence, and emphasizes the "lollapalooza" effect of biases acting together. Roughly 108 minutes of reading, drawn from Poor Charlie's Almanack.