Munger’s Psychology Mindmapped

If you want to know about the properties of elements then you should read the periodic table. If you want to know about the solvency of a company then you should look at its balance sheet. What if we want to learn about our own irrationality? Without any doubt I would read Munger’s psychology of human misjudgment. I came…

Real Estate Psychology

I am currently in India enjoying my vacation. Couple of weeks back I met my friend who lives in Keelkattalai, Chennai. Near his place there was a new apartment complex that was being constructed. When asked about the price I was told that it costs Rs 6,200 per sqft. At this price if you want…

Narrative Fallacy

Our brain consists of two hemispheres; left and right. The two halves communicate with each other through a connecting fabric called as corpus callosum. For patients suffering from a form of epilepsy, corpus callosum needs to be severed to reduce the effects of epilepsy. The patients will lead a normal life after the surgery. But after removing this connecting…

Keeping a Diary

Human beings are the ultimate product of evolution. It has produced great minds like Issac Newton, Albert Einstein, and Thomas Edison. Gravity was discovered by Newton. This discovery explained why earth revolves around the sun and moon revolves around the earth. It was the same Newton who lost his money in south sea bubble. He wrote – I can…

Stories triumph Statistics

My sun sign is Scorpio. One of the astrology website gave me the following prediction. I wanted to find out if this prediction has any truth in it. I did a simple thought experiment. The world has 7.2 billion people and there are 12 sun signs. Let us assume that the sun signs are evenly distributed…

Two Selves

Two patients A and B underwent a painful colonoscopy procedure. Every 60 seconds the patients indicated the level of pain they experienced at that moment. The scale of pain is from 0 (no pain) to 10 (intolerable pain). The pain intensity is plotted in the y axis and the duration of the procedure is plotted in…

Mastermind

Sherlock Holmes met Watson for the first time and told him with utter certainty, “You have been in Afghanistan, I perceive.” and Watson responds – “How on earth did you know that?“. Sherlock Holmes explains how he deduced it. I knew you came from Afghanistan. From long habit the train of thoughts ran so swiftly…