Poor Charlie's Wisdom by Charles T. Munger
April 2023
A collection of speeches and talks by Berkshire Hathaway Vice Chairman Charlie Munger, offering wisdom on decision-making, investing, and living a rational life.
Key Concepts
- Mental Models: Munger advocates for creating a "latticework of mental models" from various disciplines to help make better decisions
- Cognitive Biases: Understanding the psychology of human misjudgment and how to avoid common cognitive pitfalls
- Circle of Competence: Knowing what you know and what you don't know, and staying within your area of expertise
- Inverse Thinking: Solving problems backward (e.g., "Invert, always invert")
Personal Takeaways
Munger's multidisciplinary approach to problem-solving has deeply influenced my product decision-making. His concept of mental models helped me bridge my technical background with business strategy. I now consciously try to think from multiple perspectives when evaluating product features or market opportunities.
Favorite Quote
"In my whole life, I have known no wise people who didn't read all the time—none, zero... You'd be amazed at how much Warren [Buffett] reads—and how much I read. My children laugh at me. They think I'm a book with a couple of legs sticking out."
Recommendation
Essential reading for anyone interested in improving their thinking process. Unlike many business books that focus on specific tactics, Munger provides a framework for clear thinking that applies across domains and remains relevant regardless of trends.