# Why Facts Don't Change Our Minds



## skyQuake (28 February 2017)

Best thing on the interwebs I've read in a long time (even adjusted for comics)

Article digs much deeper than the usual confirmation bias/heuristics abput the way we think. I think I need to read this several times or buy the book

http://www.newyorker.com/magazine/2017/02/27/why-facts-dont-change-our-minds

...someone linked it in a SGH thread on HC of all places!


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## Gringotts Bank (1 March 2017)

We use beliefs to bolster a sense of self.  If you are too open to opposing views (ie. you value truth), you will find your self-image becomes less stable.  Self-image is the most stable and aggressively defended part of the psyche, so self-questioning is avoided by most.  It's not about being right, it's about maintaining an identity.

We only need to look at the political threads to see that apart from a few people, ambivalence is rarely tolerated.  Permanence of viewpoint is the norm.  So real communication is rare.

Some people attach so much importance to work identity, that the moment they retire, they wither and die along with their identity.  Some people attach so much importance to their religious identity that they hijack planes and fly them into skyscrapers.  Also goes for relationships, family, money, etc.  Most here would know what it feels like to have a relationship end, and what that does to ones identity.  The need to be able to maintain a stable identity eg. "I am an accountant with a 3 bedroom house and 1.5 kids" is extremely powerful.  Attachment to identity is the root of suffering, because one day it all has to go.  

Happy days ... if you can avoid attachment.


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## galumay (1 March 2017)

Thanks for the link Skyquake, human psychology is certainly an important area of study for investors.


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## Knobby22 (1 March 2017)

Assessment of acts and willing to change your mind based on the facts is a sign of intelligence.
People who when presented new facts can't change their minds are lacking. People who don't want to be challenged and for instance only frequent left wing or right wing sites in search of confirmation bias are lacking. People who fail to learn from their mistakes in buying shares are lacking.


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## barney (1 March 2017)

Knobby22 said:


> Assessment of acts and willing to change your mind based on the facts is a sign of intelligence.
> People who when presented new facts can't change their minds are lacking.




Interesting topic .... If I had to put it into one sentence ....

"Dogma is the root of all untruths ..... Humility is the root of all enlightenment"


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## craft (1 March 2017)

skyQuake said:


> Best thing on the interwebs I've read in a long time (even adjusted for comics)
> 
> Article digs much deeper than the usual confirmation bias/heuristics abput the way we think. I think I need to read this several times or buy the book
> 
> ...




This is a Charlie Munger speech given at Harved in 1995.

I first listened to it a long time ago and I believe it had a significant impact on my journey. There might be better presentations of the material now that behavioural finance is more established, but I think this speech is still a good summary.

Probably many won’t listen, due to the reasons this thread exists and the points made in the speech. Maybe that’s a good thing.


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## Knobby22 (1 March 2017)

Is their a transcript? 76 minutes!


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## Quant (1 March 2017)

Knobby22 said:


> Is their a transcript? 76 minutes!



http://www.rbcpa.com/mungerspeech_june_95.pdf

This leads into Critical Thinking , something thats missing in much of the world  ..   Lots of info and studies out there for those willing to pursue  , contrary to what many may think i pursue critical thinking as its a fantastic asset to have in life and this particular pursuit . It takes an effort and is not a natural instinct for most


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## galumay (1 March 2017)

Knobby22 said:


> Is their a transcript? 76 minutes!




I have a pdf version, will dig it out and post a link tonite.


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## skyQuake (2 March 2017)

craft said:


> This is a Charlie Munger speech given at Harved in 1995.
> 
> I first listened to it a long time ago and I believe it had a significant impact on my journey. There might be better presentations of the material now that behavioural finance is more established, but I think this speech is still a good summary.
> 
> Probably many won’t listen, due to the reasons this thread exists and the points made in the speech. Maybe that’s a good thing.





About 45 minutes in I suddenly remembered I had seen this before!
Amazing how many details one forgets over time


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## flynnmactier (9 March 2017)

Thanks for sharing the link.


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## ConnorLockington (20 July 2017)

Interesting....Thank you guys for sharing...


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