#295 I had dinner with Charlie Munger

2046 snips

Mar 21, 2023

Discover insights from a transformative dinner with Charlie Munger, where the importance of investing in extraordinary businesses at fair prices is highlighted. The discussion reveals the significance of surrounding oneself with influential people and valuing time. Explore principles of success, emphasizing patience and a proactive mindset in business. Learn from Rose Blumkin's inspiring journey in the retail world and the value of continuous learning and trust. The conversation also touches on profound life lessons about change and mortality.

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ANECDOTE

Dinner with Charlie

David Senra recounts his dinner with Charlie Munger, still in disbelief.
He describes the experience as surreal, likening it to a scene from "The Defiant Ones" documentary.

INSIGHT

Munger's Unlikely Path

Charlie Munger, despite lacking formal business education, became a genius investor.
He prioritized reading and learning from the "eminent dead."

ANECDOTE

Munger and Buffett's Partnership

Charlie Munger's life changed after a chance meeting with Warren Buffett.
This meeting mirrored Ben Franklin's strategic relationship-building with George Washington.

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Franklin & Washington: The Founding Partnership

Edward J. Larson

This book by Edward J. Larson explores the three-decade-long bond between Benjamin Franklin and George Washington, two vastly different men who were instrumental in American independence and the crafting of the United States Constitution. Larson details their contributions during the American Revolution, with Franklin leading diplomatic efforts in Europe and Washington commanding the Continental Army. The book also covers their work in the 1780s to strengthen the union, leading to the framing and ratification of the Constitution. It emphasizes their intimate working friendship and how it amplified their collective efforts for the American project.

Jony Ive: The Genius Behind Apple's Greatest Products

Leander Kahney

This book offers a detailed portrait of Jony Ive, from his early days as an English art school student with dyslexia to his rise as the most acclaimed tech designer of his generation. Leander Kahney draws on interviews with Ive’s former colleagues and Apple insiders to provide insight into the creation of Apple's most iconic products. The book highlights Ive’s collaboration with Steve Jobs, their impact on reversing Apple’s decline, and how their designs have revolutionized modern technology and created a global fan base[2][3][4].

The Tao of Charlie Munger

A Compilation of Quotes from Berkshire Hathaway's Vice Chairman on Life, Business, and the Pursuit of Wealth With Commentary by David Clark

David Clark

This book is a compendium of quotes from Charlie Munger, culled from interviews, speeches, and questions and answers at the Berkshire Hathaway and Wesco annual meetings. It offers insights into Munger’s remarkable financial success and life philosophies. Described by Business Insider as 'sharp in his wit and investing wisdom,' Munger’s investment tips, business philosophy, and rules for living are unique, intelligent, and successful. The book is structured similarly to The Tao of Warren Buffett and The Tao of Te Ching, with commentary by David Clark, coauthor of the Buffettology series.

The Power Broker

Robert Moses and the Fall of New York

Robert Caro

This book is a monumental biography of Robert Moses, who was the single most powerful man in New York City and State during his time. It explores how Moses accumulated and wielded power, shaping the city through his public works projects, including highways, bridges, and parks. The book delves into Moses's early life, his idealistic beginnings, and his transformation into a powerful figure who dominated New York's politics without ever being elected. It also highlights the social and environmental impacts of his projects and his eventual fall from power. The biography is renowned for its detailed and nuanced portrayal of power dynamics in urban politics[2][4][5].

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.

Meet You in Hell

Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Transformed America

Les Standiford

This book tells the riveting story of Andrew Carnegie and Henry Clay Frick, two founding fathers of American industry, and their bitter rivalry that emerged from their partnership. The narrative focuses on the 1892 Homestead steel strike, which was one of the deadliest labor disputes in U.S. history. Standiford captures the majesty and danger of steel manufacturing, the rough-and-tumble business world, and the fraught relationship between 'the world’s richest man' and the ruthless coke magnate. The book explores themes of industrialization, labor conflicts, and the personal idiosyncrasies of these two industrial titans[1][4][5].

Hard Drive

Bill Gates and the Making of the Microsoft Empire

Jim Erickson

James Wallace

This book is a detailed exposé of Bill Gates' life and the early days of Microsoft. The authors follow Gates from his childhood as an unkempt thirteen-year-old computer hacker to his present-day status as the most powerful and feared player in the computer industry. The book provides a balanced analysis of Gates' business triumphs and his driven personality, including his singular accomplishments, brattiness, arrogance, and hostility. It also delves into the intense atmosphere at Microsoft, the company's strategic positioning, and key events such as the partnership with IBM and the development of MS-DOS and Windows[1][3][5].

Born of This Land: My Life Story

Chung Ju-yung

This book is an English translation of Chung Ju-yung's autobiography, chronicling his life from escaping his home as a young man to establishing the Hyundai Group. It covers his early entrepreneurial ventures, the growth of Hyundai into a global conglomerate, and his role in major infrastructure projects such as the Soyang Dam and the Gyeongbu Expressway. The book also touches on his personal life, his philosophy, and his efforts towards the reunification of Korea, including the notable act of herding 1,001 cows through the Korean Demilitarized Zone to North Korea.

Am I Being Too Subtle? Straight Talk From a Business Rebel

Straight Talk From a Business Rebel

Sam Zell

In 'Am I Being Too Subtle? Straight Talk From a Business Rebel,' Sam Zell shares his life story and business insights. Born to Jewish refugees who fled Poland before WWII, Zell recounts his journey from managing student housing to becoming one of America's leading real estate moguls. The book highlights his key principles, such as assessing downside risks, having a clear vision, and trusting his instincts. Zell also discusses his strategy of targeting troubled assets, his role in sponsoring numerous IPOs, and his unconventional approach to business and life. The book is filled with humorous and insightful stories, making it an indispensable guide for entrepreneurs and investors.

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.

Total Recall

My Unbelievably True Life Story

Arnold Schwarzenegger

Simon & Schuster Inc

In 'Total Recall,' Arnold Schwarzenegger shares his life story in his signature larger-than-life style. The book chronicles his early life in Austria, his rise to fame as a bodybuilding champion, his successful career in Hollywood, and his tenure as the Governor of California. It highlights his immense ambition, tenacity, and business acumen, making him one of the greatest immigrant success stories of our time.

All I Want to Know Is Where I'm Going to Die So I Can Avoid Going There

How to Live a Longer, Healthier Life

James P. O'Shaughnessy

In this book, James O'Shaughnessy applies his analytical skills to the field of health and longevity. He uses data and research to identify common causes of death and provides strategies for avoiding them, aiming to help readers live longer and healthier lives. The book is an extension of his quantitative approach, this time applied to health rather than finance.

What I learned from having dinner with Charlie Munger and rereading The Tao of Charlie Munger.

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Follow one of my favorite podcasts Invest Like The Best !

(5:45) The blueprint he gave me was simple: Forget what you know about buying fair businesses at wonderful prices; instead, buy wonderful businesses at fair prices.

(8:48) He has never forgotten the importance of having friends in high places.

(9:04) Most people systematically undervalue their time. — Peter Thiel

(11:08) Franklin & Washington: The Founding Partnership by Edward Larson. Founders #251)

(12:23) Meet You in Hell: Andrew Carnegie, Henry Clay Frick, and the Bitter Partnership That Changed America by Les Standiford. (Founders #284)

(15:02) Charlie took the excess capital out of Blue Chip Stamp and invested it in profitable businesses.

(16:56) Charlie started seeing the advantages of investing in better businesses that didn't have big capital requirements and did have lots of free cash that could be reinvested in expanding operations or buying new businesses.

(17:38) Go for great.

(21:33) In everything I’ve done it really pays to go after the best people in the world. —Steve Jobs

(27:15) If you're in a good business just know that it's human nature to mess it up. Don't mess it up. Just stay there and let time do its work.

(27:34) One truly great business will make your unborn grandchildren wealthy.

(28:08) All I Want To Know Is Where I'm Going To Die So I'll Never Go There: Buffett & Munger – A Study in Simplicity and Uncommon, Common Sense by Peter Bevelin. (Founders #286)

(34:39) I did not succeed in life by intelligence. I succeeded because I have a long attention span.

(34:54) Charlie Munger on how he made $400 or $500 million by reading Barron’s for 50 years.

(35:11) One of the reasons Charlie and Warren have never worried about anyone mimicking their investment style is because no other institution or individual has the discipline are the patience to wait as long as they can.

(35:47) Wisdom is prevention.

(36:50) Only play games where you 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)

(38:31) Wise people step on big and growing troubles early.

(44:51) I am continually amazed at the number of people who are presented with an opportunity and pass. There’s your basic dividing line between the people who shoot up in their careers like a rocket ship, and those who don’t — right there. — Marc Andreessen's Blog Archive (Founders #50)

(46:28) The most inspiring biography I’ve read so far: Born of This Land: My Life Story by Chung Ju-yung. (Founders #117)

(47:11) Invest Like The Best #204 Sam Hinkie Find Your People

(42:42) Rober Caro’s Books:

The Power Broker

The Path to Power: The Years of Lyndon Johnson I

Means of Ascent: The Years of Lyndon Johnson II

Master of the Senate: The Years of Lyndon Johnson III

The Passage of Power: The Years of Lyndon Johnson IV

(48:46) We just got after it and we stayed after it. — Sam Walton: Made In America by Sam Walton. (Founders #234)

(52:39) Some brand names own a piece of consumer's minds and they do not have any direct competition.

(55:30) We are individual opportunity driven.

(57:08) Size and market domination can create their own kind of durable competitive advantage.

(56:15) Jony Ive: The Genius Behind Apple's Greatest Products by Leander Kahney. (Founders #178)

(1:01:57) Extreme specialization is the way to succeed. Most people are way better off specializing than trying to understand the world.

(1:04:44) Wise people want to avoid other people who are just total rat poison and there are a lot of them.

(1:05:35) Charlie and I have seen so much of the ordinary in business that we can truly appreciate a virtuoso performance.

(1:09:00) Am I Being Too Subtle?: Straight Talk From a Business Rebel by Sam Zell. (Founders #269)

(1:10:15) Charlie looks at nearly everything through the lens of history. You aren't changing human nature. Things will just keep repeating forever.

(1:13:13) There should be more willingness to take the blows of life as they fall. That's what manhood is, taking life as it falls. Not whining all the time and trying to fix it by whining.

(1:14:40) Hard Drive: Bill Gates and the Making of the Microsoft Empire by James Wallace and Jim Erickson. (Founders #290)

(1:17:00) Arnold Schwarzenegger autobiographies and episodes:

Total Recall: My Unbelievably True Life Story by Arnold Schwarzenegger. (Founders #141)

Arnold: The Education of a Bodybuilder by Arnold Schwarzenegger. (Founders #193)

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