One of my case studies in life is Charlie Munger, he’s Warren Buffet’s business partner. He speaks of how we always ignore second order effects.

One of my case studies in life is Charlie Munger, he’s Warren Buffet’s business partner. He speaks of how we always ignore second order effects. In other-words, effects of effects of effects.

He means, that effects also have effects which have effects. That sometimes you do one thing, that will screw up your entire life. You make a girl pregnant before you are ready to manage a kid, because of that, the girl fails to complete her studies. Since she’s failed to complete her studies, she finds it hard to get a job. Because she can’t get a job, she probably becomes a prostitute. Because she’s a prostitute, she doesn’t give the child enough care. Because the child is raised without care, he grows up to become a criminal. Because he’s a criminal, he goes ahead to murder an important doctor.

That important doctor would probably have saved 1000 lives.