Pender Book Review: Influence by Robert Cialdini
We first read Cialdini’s psychology classic “Influence” more than a decade ago after hearing that it was one of Charlie Munger’s favourite all time books – we have been hooked on its core findings ever since.
Cialdini’s “six weapons of influence” filled in a lot of holes in our thinking when it came to explaining our own behaviour and the actions of others. Of note, he shows us that a significant number of our psychological biases work completely unconsciously.
We think the book will find a natural audience among people in the field of persuasion and for those that sell, but perhaps more importantly, for anyone that wants to understand how to improve their decision making and defend themselves against these biases.
Benjamin Graham was referring to psychology when he said “The investor’s chief problem—and even his worst enemy—is likely to be himself.” We believe that maintaining a “behavioural edge” by understanding how psychology subtly works to influence us is extremely important when investing. This book gives you some of the tools on how to insulate yourself.
Dave Barr & Felix Narhi