Poor Charlie's Almanack
Poor Charlie's Almanack is a collection of 11 talks by the legendary Berkshire Hathaway vice chairman, which has become a touchstone for a generation of investors and entrepreneurs. The book is a compilation of Charlie Munger’s lessons in investment strategy, philanthropy, and living a rational and ethical life. He also dishes out folksy wisdom about values and valuation accumulated over almost a century. Using his encyclopedic mastery, he quotes references from classical orators to eighteenth- and nineteenth-century European literati to pop culture. You’ll learn why Charlie considers multidisciplinary learning vital to success, his checklist for investment criteria, and how to build a trillion dollar company from scratch.
MORE ABOUT THE BOOK
Poor Charlie’s Almanack is a collection of Charlie Munger’s best advice given over 30 years, in the form of 11 speeches given as commencement addresses and roundtable talks.
His unique worldview, what he calls a 'multidisciplinary' approach, is a self-developed model for clear and simple thinking while being far from simplistic itself.
This book brings together his investing thoughts beyond his famous statement "I have nothing to add."
KEY TAKEAWAYS
Multidisciplinary Thinking.
Charlie Munger emphasizes the importance of expanding one's thinking across different disciplines to make better decisions. He calls this approach a "latticework of mental models."
Investment Principles.
He shares his investment philosophy, which is heavily influenced by Warren Buffett. He stresses the importance of patience, rationality, and focusing on the long-term intrinsic value of a business.
Psychology and Human Behavior.
He discusses how psychological biases can cloud judgment and how understanding these biases can lead to better decision-making. He advocates for knowing the basics of psychology to navigate life and business.
Circle of Competence.
Munger advises investors to stay within their circle of competence—areas they thoroughly understand—when making investment decisions. This helps in avoiding unnecessary risks.
Learning from Mistakes.
He believes in learning from one’s mistakes and the mistakes of others. He encourages a mindset of continuous learning and improvement throughout life.
Preparation and Hard Work.
He stresses the importance of thorough preparation and hard work in achieving success, whether in investing or any other endeavor.
Ethical Considerations.
He emphasizes the importance of ethical behavior and integrity in business and life. He believes that long-term success is more sustainable when based on ethical principles.