In each chapter of this book and the book as a whole, author Peter does a good job of laying down the foundations for what is sub sequentially to follow along in the book. The theme of the sub title From Darwin To Munger is the foundation of how this book is structured (primitive-to-evolution).
The beginning of the book lays down explanations of how our brains biologically create thoughts and how it is influenced or “hardwired” by the connections we make. Peter then gives examples and shares studies from Charles Darwin himself, along with others, on how our natural ways of thinking have derived from our early ancestor’s primitive brain’ and thought processes that they used their primitive experiences. He then goes on to connect those natural thinking tendencies that we’ve inherited and explained why we make the decisions that we make today.
Peter Bevelin does a good job of connecting the dots for us to enable us to understand what influences our thinking.
After laying down the subject of what influences out thinking, Peter goes on to explain the Psychology Of Misjudgments and the reasons why we make mistakes. This is the precursor to the entire theme of the book set, which is about investing. Many examples, stories, quotes, and wisdom in this book is from business and investing moguls Charles Munger (hence the title) and Warren Buffett.
Peter further explains the Physics And Mathematics Of Misjudgments, which includes the following subjects:
- Systems Thinking
- Scales and limits
- Numbers and their meaning
- Probabilities and number of possible outcomes
- Coincidences and miracles
- Reliability of case evidence
- Misrepresentative evidence
In all, the structure of Seeking Wisdom is sound in enabling the reader to connect the dots of the ideas that the author is attempting to deliver. I guess Peter is a true follower of the wisdom that is shared in his own book. And that’s always a great thing!
As mentioned in Part 1, this is foundational knowledge for investing because investing is 80% psychological. Our natural ways of thinking contradict the very things that we should be doing instead when investing. And this goes for many other life aspects as well.
Stay tuned for more about Seeking Wisdom: From Darwin To Munger.