Book 76 of 141

    From the library

    Poor Charlie's Almanack

    Charlie Munger, 2005

    In one paragraph

    A collection of speeches and wisdom from Charlie Munger, Warren Buffett's longtime business partner and vice chairman of Berkshire Hathaway. Covers mental models, decision-making, investing principles, and life wisdom from one of the most respected investors and thinkers in business.

    Also tagged

    Leadership
    Philosophy

    Where this sits in the operating system

    Multidisciplinary Thinking

    Mental Models & Decision Frameworks

    Inversion Thinking

    Mental Models & Decision Frameworks

    Long-term Compound Thinking

    Mental Models & Decision Frameworks

    Conservative Margins

    Mental Models & Decision Frameworks

    Key insights

    A latticework of models from many disciplines, because a person with one model will force every problem into it.

    Invert. Munger's most-used move is asking what would guarantee failure and then avoiding that.

    The psychology of human misjudgement speech is the core of the book and worth more than the rest combined.

    Recognise it early

    The failure and the correction sit side by side deliberately. Read the left column asking whether any of it is already true of you.

    What goes wrong

    Using single-discipline thinking for complex problems

    Array experience on latticework of modelsuse multiple disciplines

    Trying to be brilliant instead of avoiding stupidity

    Focus on consistently not being stupid rather than seeking brilliance

    Operating outside circle of competence without acknowledging it

    Knowing what you don't know is more useful than being brilliant

    Seeking quick results instead of patient value building

    The big money is in the waitingfocus on long-term compound value

    Ignoring psychological biases in decision-making

    Understand and design around human psychological tendencies

    The same idea, argued differently

    Nassim Nicholas Taleb

    David R. York, Andrew L. Howell

    Adam Smith

    Shane Parrish

    The full breakdown

    Before you close this

    Naming the specific moment you will act roughly doubles the odds you do.

    Reference

    Author
    Charlie Munger
    Published
    2005
    Category
    Business

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