Mungerisms • Charlie Munger Bot @CharlieBot

Quotes by Charlie Munger from his talks and book (Poor Charlie's Almanack) • Bot (Follow for more) gumroad.com/a/743273587/Ax… 100 Mental Models Program: Joined July 2019

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Mungerisms • Charlie Munger Bot @CharlieBot

14 hours ago

There are actually businesses that you will find a few times in a lifetime where any manager could raise the return enormously just by raising prices - and yet they haven't done it. So they have huge untapped pricing power that they're not using. That is the ultimate no-brainer

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Mungerisms • Charlie Munger Bot @CharlieBot

19 hours ago

There are actually people out there who don't price everything as high as the market will easily stand. And once you figure that out, it's like finding money in the street - if you have the courage of your convictions.

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Mungerisms • Charlie Munger Bot @CharlieBot

a day ago

"Getting the incentives right" for the decision maker is a very, very important lesson.

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Mungerisms • Charlie Munger Bot @CharlieBot

2 days ago

Mental Model: PSYCHOLOGY The confidence people have in their beliefs is not a measure of the quality of evidence but of the coherence of the story, the mind has managed to construct. — Daniel Kahneman Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

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Mungerisms • Charlie Munger Bot @CharlieBot

2 days ago

It's not given to human beings to have such talent that they can just know everything about everything all the time. But it is given to human beings who work hard at it - who look and sift the world for a mispriced bet - that they can occasionally find one.

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Mungerisms • Charlie Munger Bot @CharlieBot

2 days ago

Mental Model: DOUBT / AVOIDANCE TENDENCY "The problem with the world is that the intelligent people are full of doubts while the stupid ones are full of confidence." — Charles Bukowski Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

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Mungerisms • Charlie Munger Bot @CharlieBot

3 days ago

And the wise ones bet heavily when the world offers them that opportunity [of a mispriced bet]. They bet big when they have the odds. And the rest of the time, they don't. It's just that simple.

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Mungerisms • Charlie Munger Bot @CharlieBot

3 days ago

And, of course, that's exactly what an investor should be looking for. In a long life, you can expect to profit heavily from at least a few of those opportunities if you develop the wisdom and will to seize them. At any rate, "surfing" is a very powerful model.

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Mungerisms • Charlie Munger Bot @CharlieBot

3 days ago

However, Berkshire Hathaway, by and large, does not invest in these people that are "surfing" on complicated technology. After all, we're cranky and idiosyncratic - as you may have noticed. And Warren and I don't feel like we have any great advantage in the high-tech sector.

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Mungerisms • Charlie Munger Bot @CharlieBot

4 days ago

Warren and I don't feel like we have any great advantage in the high-tech sector. In fact, we feel like we're at a big disadvantage in trying to understand the nature of technical developments in software, computer chips, or what have you. So we tend to avoid that stuff.

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Mungerisms • Charlie Munger Bot @CharlieBot

4 days ago

Think better 100 Mental Models Program: + Mental Models + Stoicism + 38 extra hand picked books Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

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Mungerisms • Charlie Munger Bot @CharlieBot

4 days ago

"Again, that is a very, very powerful idea. Every person is going to have a circle of competence. And it's going to be very hard to enlarge that circle." - Charlie Munger Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

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Mungerisms • Charlie Munger Bot @CharlieBot

5 days ago

So you have to figure out what your own aptitudes are. If you play games where other people have the aptitudes and you don't, you're going to lose. And that's as close to certain as any prediction that you can make.

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Mungerisms • Charlie Munger Bot @CharlieBot

5 days ago

You have to figure out where you've got an edge. And you've got to play within your own circle of competence.

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Mungerisms • Charlie Munger Bot @CharlieBot

5 days ago

Sears had layers and layers of people it didn't need. It was very bureaucratic. It was slow to think. And there was an established way of thinking. If you poked your head up with a new thought, the system kind of turned against you.

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Mungerisms • Charlie Munger Bot @CharlieBot

6 days ago

Double entry bookkeeping was a hell of an invention. And it's not that hard to understand. But you have to know enough about it to understand its limitations - because although accounting is the starting place, it's only a crude approximation.

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Mungerisms • Charlie Munger Bot @CharlieBot

6 days ago

Start getting worldly wisdom by asking why, why, why in communicating with other people about everything.

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Mungerisms • Charlie Munger Bot @CharlieBot

6 days ago

Which models are most reliable? Well, obviously, the models that come from hard science and engineering are the most reliable models on this Earth.

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Mungerisms • Charlie Munger Bot @CharlieBot

7 days ago

And, of course, the engineering idea of a backup system is a very powerful idea. The engineering idea of breakpoints - that's a very powerful model, too. The notion of a critical mass - that comes out of physics - is a very powerful model.

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Mungerisms • Charlie Munger Bot @CharlieBot

7 days ago

The perceptual apparatus of man has shortcuts in it. The brain cannot have unlimited circuitry. So someone who knows how to take advantage of those shortcuts and cause the brain to miscalculate in certain ways can cause you to see things that aren't there.