Charlie Munger: The Complete Investor (Columbia Business School Publishing)

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Man’s Search for Meaning by Viktor Frankl (1946). Although this title appears on nearly every Charlie Munger reading list, we have been unable to definitively confirm that he has ever talked about the book. 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. What is the meaning of life? This book takes a look at the work and beliefs of three leading American scientists: Edward Fredkin, Edward O. Wilson and Kenneth Boulding.

Recommend Nobel Prize Winners in Economics, Daniel Kahneman “Thinking, Fast and slow”, Reading this book will help understand Munger’s interdisciplinary foundation, It’s delicious to read the two books together. Hagstrom notes that this investing strategy – called focus investing – relies on the underlying business’s financials. So while you don’t have to be a financial whiz to leverage it, you may want to brush up on your foundational knowledge with our “best investing books” recommendation list. How the Scots Invented the Modern World Also, it’s worth noting that Franklin is the author of another book — The Way to Wealth — from which this blog draws its name. Andrew Carnegie The book is one of the primary business texts in North America. So it shouldn’t surprise you that I was first introduced to this as part of my MBA program.Also worth noting is that while Ron Chernow is an acclaimed historian, he’s most widely known as the author of the Alexander Hamilton biography that inspired actor and musician Lin-Manuel Miranda to write the smash-hit musical Hamilton. F.I.A.S.C.O. It left him with an aftermath of fear for the rest of his life, and all his methods were designed to keep that at bay. Conversely, if a business earns 18% on capital over 20 or 30 years, even if you pay an expensive looking price, you’ll end up with a fine result. Anyone who is even remotely active and concerned with investing will know of Charlie. For those whom the name means nothing, this book will more than capably fill in the gaps and dispense a lot of wisdom along the way.

In the annual Berkshire Hathaway and Wesco shareholder meetings and speeches, Munger recommends some books. The relevant books and sources are now organized as follows: Charlie Munger is, arguably, the world's best investor. His 'worldly wisdom'—a latticework of understanding separate disciplines—is a powerful way to achieve superior investment results. Without it, success in the market—or anywhere else—is a short-lived fluke. Robert Hagstrom, author of The Warren Buffett Way and Investing: The Last Liberal Art

Customer reviews

In my whole life, I have known no wise people (over a broad subject matter area) who did not read all the time – none, zero.” But that’s not enough: You have to have a temperament to grab ideas and do sensible things.Most people don’t grab the right ideas or don’t know what to do with them.”

Of this book Munger said: “(The) best work of science exposition and history that I’ve read in many years!” Den of Thieves by James B. Stewart (1992). Munger allegedly recommended this book at Berkshire’s 1992 annual meeting. The next few years of Charlie Munger’s life were filled with hard work, love and tragedy. Charlie left Omaha to attend the University of Michigan in 1941, and left school in 1943 to enlist in the Army Air Corps. During this time he met and married Nancy Huggins. I am not entitled to have an opinion unless I can state the arguments against my position better than the people who are in opposition. I think that I am qualified to speak only when I have reached that state.” The early life of Charlie Munger is full of tragedies. At the age of 21, he got married, but after 8 years, they divorced. His wife kept everything and he left home with his children in pathetic conditions. After a year of that his 9 years old son Teddy Munger died of cancer.This “latticework” provides the foundation on which the wisdom you gain from reading can sit, and allows you to draw knowledge from multiple fields to better understand the world. Munger has a unique worldview, a self-developed ‘ Multiple Mental Models’ approach that borrows big ideas from a variety of disciplines and serves as his framework for gathering, processing and acting on information. He’s self-taught and considers that the patient, organized and focused approach to life helped him become a successful investor. Find out what you do best, Then persevere, Happy to do it well.”This is Charlie’s usual way of life. The Daily Journal was a strong business up until the financial crisis. Return on equity averaged 25% to 30% per annum; cash conversion was 70% per annum on average, and book value doubled between 2005 and 2008. However, since 2010 revenue growth has slowed to around 2.6% per annum and net income has fallen by 75%. EBITDA has more than halved. The Daily Journal is a publisher specializing in legal text. The Daily Journal provides news of interest to members of the legal profession, specializes in public notice advertising, publishing state-mandated notices of death, fictitious business names, and sells software used to administer court cases. Charlie Munger started his working life as a lawyer, so the Daily Journal is a natural fit for him.