“Spend each day trying to be a little wiser than you were when you woke up,” Charles T. Munger advises in Poor Charlie’s Almanack. Originally published in 2005, this compendium of eleven talks delivered by the legendary Berkshire Hathaway vice-chairman between 1986 and 2007 has become a touchstone for a generation of investors and entrepreneurs seeking to absorb the enduring wit and wisdom of one of the great minds of the 20th and 21st centuries.
Edited by Peter D. Kaufman, chairman and CEO of Glenair and longtime friend of Charlie Munger—whom he calls “this generation’s answer to Benjamin Franklin”—this abridged Stripe Press edition of Poor Charlie’s Almanack features a brand-new foreword by Stripe cofounder John Collison.
Poor Charlie’s Almanack draws on Munger’s encyclopedic knowledge of business, finance, history, philosophy, physics, and ethics—and more besides—to introduce the latticework of mental models that underpin his rational and rigorous approach to life, learning, and decision-making. Delivered with Munger’s characteristic sharp wit and rhetorical flair, it is an essential volume for any reader seeking to go to bed a little wiser than when they woke up.
From Poor Charlie’s Almanack by Charles T. Munger, here are seven key lessons you’ll learn:
The Importance of Multidisciplinary Thinking: Munger emphasizes the value of mental models from various disciplines—economics, psychology, mathematics, and more—to solve complex problems and make better decisions.
The Power of Inversion: Learning to approach problems by thinking backward—considering what could go wrong or what could lead to failure—is a transformative way to avoid pitfalls and identify solutions.
Continuous Learning: Munger’s philosophy underscores the necessity of lifelong learning, intellectual curiosity, and the habit of constantly acquiring knowledge to stay ahead.
Building a Latticework of Mental Models: Understanding the interconnectedness of ideas from different fields creates a robust framework for evaluating decisions and understanding the world.
The Value of Long-Term Thinking: Patience and compounding are central to both personal and financial growth. Avoiding impulsive decisions can lead to sustained success.
Integrity as a Guiding Principle: Success rooted in merit, ethics, and fairness is not only sustainable but also deeply fulfilling. Munger stresses the importance of living with integrity and building trust.
Avoiding Psychological Biases: Munger highlights cognitive biases—confirmation bias, overconfidence, and others—that often derail decision-making, and he teaches strategies to mitigate their influence.
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