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Cover of Influence: The Psychology of Persuasion by Robert Cialdini

Influence: The Psychology of Persuasion

Robert Cialdini · 1984

Six universal principles of persuasion: reciprocity, commitment, social proof, authority, liking, and scarcity. Ostensibly about marketing, but the implications for investing are enormous. Every bubble is social proof in action. Every pump-and-dump exploits authority and scarcity. Munger considers it essential reading for understanding why markets behave the way they do.

Business & Investing · the Pro canon

The case for it, the case against, and the rest of the canon open with Pro.