You make poor decisions

Here’s a talk from Charlie Munger. He’s Warren Buffett’s very close business partner who Warren would never have been as successful without. I’ve read and listened to a lot of what he’s written and said. He is extremely smart in that he’s able to notice things other people might now, and he’s also well-educated so that he has a lot of raw material to work with.

Watch this and take to heart what he says.

And here’s a summary of it thanks to The Motley Fool.

Also, here’s something that strikes me as relevant, probably due to the use of incentives, and the fact that it’s a good example of systems thinking, and Charlie would like it:

In 1986, new federal legislation, the Toxic Release Inventory, required U.S. companies to report all hazardous air pollutants emitted from each of their factories each year. Through the Freedom of Information Act, that information became a matter of public record. In July 1988, the first data on chemical emissions became available. The reported emissions were not illegal, but they didn’t look very good when they were published in local papers by enterprising reporters, who had a tendency to make lists of “the top ten local polluters.” That’s all that happened. There were no lawsuits, no required reductions, no fines, no penalties. But within two years chemical emissions nationwide had decreased by 40 percent. Some companies were launching policies to bring their emissions down by 90 percent, just because of the release of previously withheld information. — Thinking in Systems, Donella Meadows

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