#329 Charlie Munger (the NEW Poor Charlie's Almanack)

2249 snips

Dec 5, 2023

Dive into the practical wisdom of Charlie Munger, where he shares his insights on trust as a powerful economic force. Explore the significance of lifelong learning and resilience through Munger's personal experiences and storytelling. Learn why focusing on great businesses with moats leads to enduring success. Discover how effective communication and innovative hiring strategies can transform startups, revealing the hidden advantages of specialization and collaboration in the business world.

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ADVICE

Prescription for Misery

Want to avoid misery?
Avoid drugs, envy, and resentment.

ANECDOTE

Disraeli's Compromise

Charlie Munger highlights Disraeli's unique approach to resentment.
Disraeli put names of those who wronged him in a drawer, finding pleasure as life dealt with them.

ADVICE

Vicarious Wisdom

Learn from others' mistakes.
Avoid repeating common disasters; there's little originality in them.

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The Founders

The Story of PayPal and the Entrepreneurs Who Shaped Silicon Valley

Jimmy Soni

In 'The Founders', Jimmy Soni delves into the turbulent early days of PayPal, a company that would become one of the world's foremost payment platforms. With hundreds of interviews and unprecedented access to internal material, Soni chronicles the challenges faced by the founders, including bruising competition, internal strife, online fraud, and the dot-com bust of the 2000s. The book highlights how this group of entrepreneurs, often referred to as the 'PayPal mafia', went on to form, fund, and advise leading companies such as Tesla, Facebook, YouTube, SpaceX, and LinkedIn. It is a story of iteration, inventiveness, and the profound impact these individuals had on modern technology and entrepreneurship.

A Man for All Markets

From Las Vegas to Wall Street, How I Beat the Dealer and the Market

Edward O. Thorp

In this book, Edward O. Thorp recounts his remarkable career, from inventing card counting systems to beat blackjack dealers, to developing mathematical formulas that gave him an edge in the financial markets. Thorp's story includes his invention of the world's first wearable computer to predict roulette outcomes, his detection of the Bernie Madoff scheme, and his interactions with notable figures like Warren Buffett and Rudy Giuliani. The book offers practical wisdom on investing, asset allocation, and wealth management, making it an intellectual thrill ride for readers interested in finance and mathematics.

Zero to One

Notes on Startups, or How to Build the Future

Peter Thiel

In 'Zero to One,' Peter Thiel argues that true innovation comes from creating something entirely new, going from 'zero to one,' rather than incrementally improving existing ideas. He emphasizes the importance of vertical progress through technology and the benefits of monopoly in driving innovation. Thiel also discusses the need for long-term planning, the importance of finding the right co-founders, and the power law in startup success. The book challenges conventional wisdom and encourages readers to think critically and aim big to build the future[2][3][5].

Socrates

In *The Apology*, Plato recounts the speech Socrates delivered at his trial, where he was charged with impiety and corrupting the youth. Socrates defends his actions and philosophy, emphasizing his duty to seek truth and wisdom as directed by the oracle at Delphi. He argues that his mission is to awaken the Athenian state from its ignorance and that he is willing to face death rather than abandon his philosophical pursuits. The dialogue is a cornerstone of Western philosophy, highlighting Socrates' method of questioning and his commitment to ethical living[1][2][4].

Confessions of an Advertising Man

David Ogilvy

First published in 1963, this book revolutionized the world of advertising and became a bible for the 1960s ad generation. It covers topics such as how to manage an advertising agency, acquire and retain clients, build great campaigns, write potent copy, and navigate office politics. The book is filled with Ogilvy's pioneering ideas, inspirational philosophy, and practical advice, making it an essential blueprint for good practice in business.

In the company of giants

Rama Dev Jager

This book presents groundbreaking conversations with pioneers of the digital world. It includes interviews with leaders such as Bill Gates, Steve Jobs, T. J. Rodgers, Gordon Eubanks, Steve Case, and others. The interviews cover their experiences, successes, challenges, and visions for the future of technology. The book provides a unique perspective on the human side of these tech giants and the strategies that drove their companies to success. It highlights the importance of customer focus, hiring good people, and mission-driven businesses, as well as the courage and innovation required to shape the digital world[2][5][6].

Elon Musk

Tesla, SpaceX, and the Quest for a Fantastic Future

Ashlee Vance

This book is an authorized biography that delves into the life of Elon Musk, from his tumultuous childhood in South Africa to his rise as a visionary entrepreneur in Silicon Valley. Ashlee Vance captures Musk's journey through his various ventures, including PayPal, SpaceX, Tesla, and SolarCity. The book examines Musk's unique personality, his insatiable drive, and his ability to thrive through hardship. It also explores the broader context of American innovation and the challenges of global competition, positioning Musk as a contemporary amalgam of legendary inventors and industrialists like Thomas Edison, Henry Ford, and Steve Jobs.

Sam Walton

Made in America

John Huey

Sam Walton

In 'Sam Walton: Made in America,' Sam Walton shares his personal and professional journey, from his early life in Kingfisher, Oklahoma, to the founding and expansion of Walmart. The book is a first-person account supplemented by quotes from friends, family, and colleagues. It highlights Walton's core values, such as the importance of hard work, customer satisfaction, and competitive pricing. The autobiography also provides insights into Walton's leadership style, his approach to business, and the lessons he learned throughout his career. The book was published posthumously in 1993 and offers a compelling and inspiring look at the life of one of America's most successful entrepreneurs.

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

The Wit and Wisdom of Charles T. Munger

Charles T. Munger

Peter D. Kaufman

Originally published in 2005, this book is a compendium of eleven talks delivered by Charles T. Munger between 1986 and 2007. It draws on Munger's extensive knowledge of business, finance, history, philosophy, physics, and ethics to introduce the latticework of mental models that underpin his rational and rigorous approach to life, learning, and decision-making. The book includes a foreword by Warren Buffett and a new foreword by Stripe cofounder John Collison in the abridged Stripe Press edition.

Johnny Carson

Henry Bushkin

This book is a memoir written by Henry Bushkin, who served as Johnny Carson's lawyer, wingman, fixer, and closest confidant from 1970 to 1988. Bushkin provides a detailed and nuanced account of Carson's life, revealing his complexities as a voracious womanizer, his difficulties with his wives and children, and his public and private persona. The book also delves into Bushkin's own experiences and the various roles he played in Carson's life, including helping Carson navigate legal and personal issues, avoiding mob entanglements, and socializing with celebrities. The memoir is described as shocking, poignant, and uproarious, offering insights into the enigmatic life of Johnny Carson[3][4][5].

What I learned from reading the NEW Poor Charlie's Almanack: The Wit and Wisdom of Charlie Munger.

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Listen to this incredible conversation between Charlie Munger and John Collison on Invest Like The Best.

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(2:00) The practical wisdom of Poor Charlie's Almanack, this ode to curiosity, generosity, and virtue will similarly compound at successive generations of entrepreneurial readers extend his lessons to their own circumstances.

(12:00) Education is the process whereby the ability to lead a good life is acquired. — Socrates: A Man for Our Times by Paul Johnson. (Founders #252)

(22:00) Trust is one of the greatest economic forces on earth.

(29:00) Charlie is content to trust his own judgment when it runs counter to the wisdom of the herd.

(31:00) Animated: Charlie Munger: The Psychology of Human Misjudgement

(31:30) Aim for durability. Durability has always been a first rate virtue in Charlie’s eyes.

(32:00) Charlie only focuses on great businesses and great businesses have moats.

(33:00) Johnny Carson by Henry Bushkin. (Founders #183)

(42:00) You can flourish in a niche: People who specialize in the business world —and get very good because they specialize— frequently find good economics that they wouldn't get any other way.

(45:00) Being so well known has advantages of scale. This is what you might call an informational advantage. It increases social proof.

(46:30) Business Breakdowns episode on Coca Cola

(49:00) Occasionally scaling down and intensifying gives you a big advantage. (You can find great profit margins this way)

(50:00) Sam Walton: Made In America by Sam Walton. (Founders #234)

(51:00) Scale and fanaticism combined is very powerful. (Think Sam Walton)

(57:00) I also believed then, as I do now after more than fifty years as a money manager, that the surest way to get rich is to play only those games or make those investments where I have an edge. — A Man for All Markets: From Las Vegas to Wall Street, How I Beat the Dealer and the Market by Ed Thorp. (Founders #222)

(1:08:00) The best thing a human being can do is help another human being know more.

(1:14:00) Optimism is a moral duty. — Edwin Land

(1:17:00) You want to maximize the playing time of your top players.

(1:17:00) The game of competitive life often requires maximizing the experience of the people who have the most aptitude and the most determination as learning machines.

(1:22:00) The most important rule in management is get the incentives right.

(1:25:00) Never, ever think about something else when you should be thinking about the power of incentives.

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