This article is selected from Munger's speech at Harvard Law School 1995. It doesn't seem to have anything to do with investment. It just talks about under what circumstances people will make wrong judgments. But this is exactly what a great investor (or entrepreneur) needs most, that is, how to keep himself from making too many wrong decisions.
If business comes down to the interaction between decision-making and execution, then in today's era when people constantly emphasize execution (think about Six Sigma, Toyota's field management, and the wide application of ERP and CRM), it is obviously not enough to pay attention to the decision itself. Indeed, it is not easy to optimize the decision in some way compared with the standardized implementation. In this respect, Munger's method is just the opposite. Its famous saying is: "I just want to know where I will die, and then I will never go again." -He will carefully avoid the potential error trap and then find the optimal solution.
Sturm und drang, Munger 12 years ago in China A-share market today made a lasting speech: When all investors use "fear" and "greed" to explain all irrational behaviors in the capital market, finding a broader and richer behavioral explanation framework will undoubtedly help everyone to re-examine themselves and the market itself.