“Poor Charlie’s almanack” by Charles T. Munger

The author 🖋

Charlie Munger was the vice chairman of Berkshire Hathaway - the largest holding company in the world.

He was described by Bill Gates as "the broadest thinker" he has ever encountered and Warren Buffett notoriously called him his right-hand man and the architect behind their business philosophy.

Charles passed away in 2023 at the age of 99.

Key takeaways 🎓

1. Multidisciplinary approach

Based on Munger, it's important to learn a little bit about many different things.

Understanding the fundamental concepts of many different fields allows us see the big picture, avoid cognitive biases and make better decisions.

This - what he calls "latticework of mental models" - allows for more nuanced thinking from a broader perspective and helps avoid blind spots that come from a narrow focus.

2. Inversion thinking

Instead of asking how to succeed, Munger suggests asking how to avoid failure.

By identifying potential pitfalls and mistakes, we can proactively take steps to prevent them.

Thinking about a problem in reverse enhances critical thinking and provides a clearer path to achieving goals by understanding what not to do.

3. Lifelong learning

Munger believed that the continuous pursuit of knowledge is like exercise for our brain.

Staying curious throughout our life not only sharpens the mind but also equips us with the tools to adapt and thrive in a rapidly changing world.

He attributed his commitment to lifelong education as one of the keys to his personal success.

Closing thoughts 🧠

The book is a compilation of speeches, essays and interviews by the legendary investor between 1986 and 2007, edited by his longtime friend Peter D. Kaufman.

It distills the wisdom of Charlie Munger and serves as a guide to anyone seeking to understand the principles that have guided his decision-making, investing and life philosophy.

I was also pleasantly surprised that they did almost perfectly resemble the idea behind booksmarts - multidisciplinary life-long learning ✌