Reading Library · Decision-Making Tier 2: Supporting Reading

Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger

by Charles T. Munger (2005)

★★★★★ 5/5

A collection of speeches, talks, and insights from Charlie Munger on thinking and investing

"All I want to know is where I'm going to die so I'll never go there."

— Charles T. Munger

My Review

Munger's mental models approach is the closest thing to biological first principles thinking in the investment world. His emphasis on inversion, second-order effects, and multidisciplinary thinking directly influenced the framework. The speeches on human misjudgment are particularly relevant.

Why It Matters

Munger exemplifies the multi-model thinking that the Biology of Business framework promotes. His emphasis on learning from multiple disciplines and avoiding predictable errors aligns with biological pattern recognition.

Key Ideas

  • Mental models from multiple disciplines improve decision quality
  • Inversion: think about what to avoid, not just what to achieve
  • Second-order thinking: consider downstream consequences
  • Avoid standard stupidity rather than seeking brilliance

How It Connects to This Framework

The framework's emphasis on cross-domain patterns and avoiding systematic errors is directly influenced by Munger's mental models approach.

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investingmental-modelsdecision-makingtier-2

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