I was reading a newspaper headline recently which called just a 1% decline in the stock market as a ‘bloodbath’ and how investors had to suffer through the pain of losing a small part of their wealth quickly. It got me thinking about how our perception of pain and loss, especially in investing, has changed over the years. And it reminded me of my own journey with understanding and embracing discomfort. I talk about all that, and more, in this episode of #TheInnerGame #podcast.

In the grand tapestry of human existence, one of our driving forces for a long period of time has been the pursuit of wealth. In fact, society often measures one’s success and worth by the size of their bank account, the lavishness of their possessions, or the opulence of their lifestyle. However, after having followed and learned from the likes of Warren Buffett, Charlie Munger, and the old wise people, I have come to believe that the notion that being remembered solely for one’s wealth is a meaningful legacy is a hollow one. I have also come to believe that true fulfillment and lasting impact in life require a more profound and enduring purpose than the accumulation of riches. Let's talk about all that, and more, in this episode of The Inner Game podcast.

Why do we, as humans, have this innate tendency to dislike and hate? Why are we programmed to hit the ‘dislike’ button from birth? Is it just for YouTube comments, or is there more to it? Let's discuss this in today's episode of The Munger Method, which is a series on Charlie Munger's talk 'The Psychology of Human Misjudgment', and a part of The Inner Game podcast.

While we were talking about the idea of money and investing recently, a friend shared something really interesting. To get to the bottom of how I feel about money, he suggested me to write a letter to money — the same way I would write a letter to a person. While I found this idea a bit odd when I first heard it from my friend, as I thought more about it, I realized it was not such a bad idea after all. I share that letter in today's episode of The Inner Game podcast.

“The Map is Not the Territory' is a concept that originated from the work of Alfred Korzybski, who was Polish-American mathematician and philosopher. He used this idea to convey the fact that people often confuse models of reality with reality itself. According to Korzybski, models are tools that are created to represent real-world things or phenomena. However, they are not identical to those things. In other words, models are abstractions of reality and do not capture all the intricacies and nuances of the actual world. I cover all this, from the angle or life and investing, in today's episode of #TheInnerGame podcast.

There’s a saying in Hindi – "Pyaar andha hota hai," or that "Love is blind." Well, it’s a phrase that has transcended generations and cultures, reminding us that when we’re infatuated, our judgment can be clouded by the warm and fuzzy feelings of affection. But here’s the twist – not only is love or likeness of someone usually blind, it also has a sneaky cousin in the world of psychology. Let's find out in today's episode.

Our world is way more unpredictable than we tend to think. As humans, we love finding patterns and making sense of things. It’s in our nature. But as we have evolved, and as our society has advanced, the world has grown increasingly uncertain and unpredictable. At least more unpredictable than our brains like to admit. Given this, let's dive into Nassim Taleb’s enlightening book, “Fooled by Randomness” and into the world of randomness, hindsight bias, and how these concepts significantly impact our lives.

I discuss the first cause of human misjudgment that Charlie Munger spoke about in his landmark speech "The Psychology of Human Misjudgment." He called it the "Reward and Punishment Superresponse Tendency," which generally highlights the idea that humans tend to respond strongly to both rewards and punishments. It suggests that when people are offered rewards or faced with punishments, their behavior may be significantly influenced or exaggerated in response. A more specific concept that is a result of this tendency is the "Incentives Caused Bias," which suggests that when we are motivated by incentives (such as financial rewards, recognition, or other benefits), we may unconsciously or consciously act in ways that align with our incentives, even if it goes against our better judgment or ethical principles.

We’re kicking off a new series - The Munger Method - an exciting journey into the 25 causes of misjudgment, inspired by the wisdom of the one and only Charlie Munger, through his talk “The Psychology fo Human Misjudgment”. This episode covers the background of what led to this pursuit of studying human misjudgment for Munger himself.

In memory of Charlie Munger who passed away recently, I am launching a new series titled "The Munger Method", on his unforgettable speech titled “The Psychology of Human Misjudgment,” where he delved into the common cognitive biases and mental shortcuts that affect our decisions every day. This speech was originally delivered by Charlie to an audience at Harvard University in 1995 and was revised later. In a world that has become noisier and where decision making has become more confusing, I think the lessons hold much relevance as they did back then when Charlie delivered it the first time. In The Munger Method, I am going to dissect Charlie’s timeless wisdom from that speech and break it down into bite-sized, easy-to-understand videos. We’ll explore the very principles that Charlie himself considered vital, as we dive into his extraordinary insights on human psychology and why we behave the way we do.

We explore the pursuit of knowledge and freedom, as described in the ancient Indian text, Vishnu Purana, and with insights from modern thinkers like Charlie Munger. This combination of ancient wisdom and contemporary perspective offers us valuable insights into what real knowledge means and its significance in our lives.

As I mourn the passing away of my hero Charlie Munger, I also celebrate the incredible legacy he leaves behind. The impact he had on my life and the lives of countless others is a testament to his extraordinary character and the enduring power of his words. Thank your Charlie for your wonderful lessons. I look forward to seeing you someday on the other side.

We get into the world of stock market returns, and I’m going to break down two crucial sources of those returns that every investor needs to understand. Now, whether you’re a seasoned investor or just getting started, I think this insight shall be invaluable for your investing journey.

We delve into a fascinating and often debated topic: the relationship between money and happiness. It's based on a recent survey done by Empower, a financial services company in the US, that revealed how different generations perceive the role of money in achieving happiness. Now, things or numbers may be slightly different in the Indian context, but the idea remains the same.

When we are repeatedly successful, we are tempted to believe that we have found the formula for success and are no longer subject to human fallibility. As I have realized and also experienced, this is dangerous thinking, especially in a world that is continually changing, and where every right idea is eventually the wrong one.

Confucius said, "Life is really simple, but we insist on making it complicated." Isn't that profound? It's a reminder that sometimes the most profound truths are the simplest ones. But here's the kicker – simplicity isn't always easy to grasp. We often overlook it, dismiss it, or even ignore it, especially when it comes from the great minds who have achieved extraordinary things. They share their secrets, and we're like, "That's it? It can't be that simple!" In today’s episode, we look at two of the simplest secrets that can help you become an intelligent investor. These are such simple secrets that most investors fail to practice them in their investing. But these carry more than 80% weight of what makes for an intelligent investor.

I talk about the illusion of control in stock market investing, suggest ways to get over this illusion, and share an 8-point stock analysis checklist that may help you deal with it better, and make better and well-informed investing decisions.

We explore a psychological phenomenon that’s subtly pervasive yet profoundly impactful. It’s called the "illusion of control." This concept not only shapes our financial decisions but also weaves through the very fabric of our daily lives.

A question I frequently get from investors is, ‘Is now a good time to invest?’ And this question is often accompanied by a tinge of regret, with many adding, ‘I should have invested when…’ You know, timing the #stockmarket is a bit like chasing a mirage – it seems simple, yet is incredibly elusive. And in today's episode, we explore why this approach often leads investors astray and how adopting a long-term perspective in #investing can be far more rewarding. * * * References - SageOne's Investor Memo Aug 2017 - https://sageoneinvestments.com/2017/08/Market Timing Is the Enemy of Investment Success - https://firstascentam.com/forum_articles/market-timing-is-the-enemy-of-investment-success/Timing the market vs time in the market: Which is better? - https://economictimes.indiatimes.com/markets/stocks/news/timing-the-market-vs-time-in-the-market-which-is-better/articleshow/99456136.cms

As a culture, and in our quest for personal and professional fulfillment, we spend hours upon hours developing academic knowledge, building physical fitness, deciding where to go to college or learning about managing our money well. But we spend little time, if any, finding out how to make the most important decision of our lives. What is that decision? Let's find in today's episode of #TheInnerGame podcast.