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

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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.

Here is a list of those books, organized by their date of first publication. The Autobiography of Benjamin Franklin Warren Buffett has called Munger "the abominable no-man" because of his tendency to reject investment opportunities he deemed mediocre. Munger would patiently sit on tens of millions of dollars for months or years, waiting for the right opportunity to come along. "It takes character," Munger notes,"to sit there with all that cash and do nothing. I didn't get to where I am by going after mediocre opportunities." Posco is the most efficient steel company in the world. It had a pretty close to a local monopoly position in its country for a long time. It is very hard to avoid being commoditized in the modern world.An autobiography of Nobel laureate Herbert A. Simon, a remarkable polymath who more people should know about. In an age of increasing specialization, he’s a rare generalist — applying what he learned as a scientist to other aspects of his life. Crossing disciplines, he was at the intersection of “information sciences.” He won the Nobel for his theory of “bounded rationality,” and is perhaps best known for his insightful quote “A wealth of information creates a poverty of attention.” (Also part of five books that will change your life.) Munger spends most of his days reading, learning and thinking, rather than doing – he doesn’t make a lot of investments. He attributes a great deal of his success to reading and said that: However, these disciplines — — Especially psychology — — Constitutes the foundation on which his system rests.

Soft science should strengthen the basic scholarly spirit and methods imitating hard science. Here the hard sciences, Is exponential, physics, Four disciplines of chemistry and engineering. Munger spent a lot of energy, Master the basic academic spirit and methods of hard science, He used this method to learn various soft sciences, Increase interdisciplinary universal wisdom. On investing. "A few major opportunities, usually recognizable as such, will usually come to those who continually search and wait. Then, all that’s required is to bet heavily when the odds are extremely favourable, using resources available as a result of prudence and patience in the past ... When you invest, bet big. Don’t take 'initial positions' or make 'small, speculative investments' ... Be willing to 'prepay; with rigorous preparation" If you want to get wisdom, you need to sit down and read a book quietly. This is the source of wisdom. Recommended Reading:We will continue researching and updating this list if and when we’re able to verify this information. No two human beings are exactly alike. But why does every individual have a unique personality? Judith Rich Harris explores this in No Two Alike, arguing that what we all share as humans is what makes us so different from each other. The Martians of Science From human evolution to the psychology of persuasion, find Charlie Munger’s reading list below. Complement with the bookshelves of Warren Buffet, Bill Gates, Elon Musk, and Richard Branson. Fixable but unfixed bad performance is bad character and tends to create more of it, causing more damage to the excuse giver with each tolerated instance.” While making any investment capital is assigned, allocating capital and assets intelligently is a must.

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.” 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. Two other books that might interest you are Damn Right!: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger and, one of my all time personal favorites, Seeking Wisdom: From Darwin to Munger.If you, by reading the title, think this book is Munger's biography, well, it's not. Read Poor Charlie's Almanac instead. He started practicing law at a firm in Southern California, while turning to outside ventures and investing. In 1962, Munger established a new law firm together with four colleagues and, over the years, it became one of the nation’s leading business law firms. Charlie left the firm as an active partner a few years later, to focus on investment partnerships. This is likely the most important book I've read to date. Ultimately, this is a book about how one of the most successful investors in history has structured his way of thinking. His approach of adopting the best mental models from all disciplines applies to anyone. Getting to Yes: Negotiating Agreement Without Giving In presents a method of negotiation called “principled negotiation,” the purpose of which is to reach a mutually-agreeable outcome without jeopardizing professional relations between both parties. 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.

Even though Munger was influencing Buffett’s investment decision early on, he continued to manage his own partnership until the late 70s. His style at the time was to seek out arbitrage opportunities and look for cigar butts.Griffin offers an elegantly unified theory of Munger's ideas, organized in a coherent framework from a generous sampling of his scattered remarks in various forums over many years. Intelligent, thoughtful, helpful—and a delight to read. Lawrence Cunningham, author of Berkshire Beyond Buffett: The Enduring Value of Values We tend, as human beings, to be rather narrow and rigid in our decision making - particularly in business. When we look at a business only through the books they keep, that is from only a financial perspective, we might miss seeing potential pitfalls of the business's management, or the potential of their research, or the unique market that they might be creating. He also writes about common pitfalls in lazy thinking and the benefits of disciplined analysis. That kind of decision-making skill can serve every area of our lives. At first, Buffett was reluctant to pay more than book value because he was schooled in value investing. However, Munger was adamant that he do the deal. In this textbook, Harvard business professor Max Bazerman merges behavioral decision theory with research on organizational behavior to observe judgment in several managerial contexts. An excellent read for anyone who wants to sharpen their judgment abilities. The Nurture Assumption