Currently reading
Poor Charlie's Almanac. About 20% through the book and am enjoying it very much. One of those books you wonder why you waited so long to read it.
Charlie's basic guidelines were Preparation, Objectivity, Discipline, Patience, and Decisiveness. Some of these may seem at odds but Munger does a great job detailing why each is important. But over all was the to live in the present moment. Some other items seem so well known with Charlie and Warren Buffett always speaking about them like staying within a well defined circle of competence. Here's some more items to consider:
- "Remember that reputation and integrity are your most valuable assets - and can be lost in a heartbeat"
- "Guard against the effects of hubris and boredom."
- "Don't overlook the obvious by drowning in minutia."
- "Face your big troubles, don't sweep them under the rug."
"While poor outcomes are excusable in the Munger-Buffett world - given some outcomes are outside of their control - sloppy preparation and decision-making are never excusable because they are controllable."
"Well, the first rule is that you've got to have multiple [mental] models - because if you have just one or two that you're using, the nature of human psychology is such that you'll torture reality so that it fits your models, or at least you'll think it does."
"And models have to come from multiple disciplines - because all the wisdom of the world is not to be found in one little academic department."
"If you don't get this elementary, but mildly unnatural, mathematics of elementary probability into your repertoire, then you go through a long life like a one legged man in an ass kicking contest. You're giving a huge advantage to everyone else."
"Which models are the most reliable? Well, obviously, the models that come from hard science and engineering are the most reliable models on this earth."
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