Charlie Munger, Berkshire Hathaway's visionary vice chairman and Warren Buffett's indispensable financial partner, has outperformed market indexes again and again, and he believes any investor can do the same. His notion of elementary, worldly wisdom -a set of interdisciplinary mental models involving economics, business, psychology, ethics, and management-allows him to keep his emotions out of his investments and avoid the common pitfalls of bad judgment.Munger's system has steered his investments for forty years and has guided generations of successful investors. This book presents the essential steps of Munger's investing strategy, condensed here for the first time from interviews, speeches, writings, and shareholder letters, and paired with commentary from fund managers, value investors, and business-case historians. Derived from Ben Graham's value-investing system, Munger's approach is straightforward enough that ordinary investors can apply it to their portfolios. This book is not simply about investing. It is about cultivating mental models for your whole life, but especially for your investments.
Persistent readers may learn a great deal about a fascinating and accomplished investment master, but will have to do so in spite of how the book has been organized, rather than because of it.
Here’s your once-in-a-lifetime opportunity to sit down and pick the brain of one of today’s most successful investors. This book offers a personal invitation to enter the talented mind of Charlie Munger, legendary investor and financial partner of Warren Buffett.
Munger has a way with words that makes you sit and ponder not only about investing, but life in general.
In The Big Secret for the Small Investor, bestselling author Joel Greenblatt explains to everyday investors how to value a business, and why the small investor has an inherent edge over the big investment firms that have to show results month by month, quarter by quarter, year by year. Greenblatt then goes
Incentives are the cornerstone of modern life. And understanding them or ferreting them out is the key to solving just about any riddle. It isn't just the boldface names inside-trading CEOs and pill-popping ballplayers and perk-abusing politicians¾who cheat. It is the waitress who pockets her tips instead of pooling them. It
The idea of collaboration has always been used within the framework of board rooms, conferences, video conferencing and the likes. Yet now, the traditional scope of collaboration is moving into mass collaboration, in where millions and millions of individuals are able to play a role in the economy like never before.
“If you want to get rich, you’ll need a few decent ideas where you really know what you’re doing. Then you’ve got to have the courage to stick with them and take the ups and downs. Not very complicated, and it’s very old-fashioned.”
“people who cannot be alone with their own thoughts are terrible candidates to become successful investors.”
“There’s an old expression on this subject, which is really an expression on moral theory: “How nice it is to have a tyrant’s strength and how wrong it is to use it like a tyrant.”
when good management is brought into a fundamentally bad business, it’s the reputation of the business that remains intact
The reason we are not in high-tech businesses is that we have a special lack of aptitude in that area. And, yes—low-tech business can be plenty hard. Just try to open a restaurant and make it succeed. … Why should it be easy to get rich? In a competitive world, shouldn’t an easy way to get rich be impossible. —CHARLIE MUNGER, WESCO MEETING, 1998
Take the probability of loss times the amount of possible loss from the probability of gain times the amount of possible gain. That is what we’re trying to do. It’s imperfect, but that’s what it’s all about.
If something is too hard, we move on to something else. What could be simpler than that? —CHARLIE MUNGER, BERKSHIRE ANNUAL MEETING, 2006