I’ll give you an example. In my twenties, I invested $100,000 into a business idea that never took off. Now that I understand cognitive biases — thanks to Charlie Munger — I see how the pernicious sunk cost fallacy wreaked havoc upon my decision-making. Today when I consider new business ideas, instead of just imagining how great they’re going to be, I spend just as much time envisioning what could go wrong — another Munger hack. I no longer have to remind myself to think this way anymore. I’ve internalized these concepts and now my mind actually works differently.
“Think about how it feels to go to bed without brushing your teeth. It feels wrong. You feel like your day isn’t complete - and you’ll even drag yourself out of bed to do it. Why? Because brushing is so deeply ingrained into your daily routine that it actually requires more willpower to NOT brush than just to brush! It’s a deeply formed habit - and you rarely miss a day.”