For more than four decades, Charlie Munger, the Vice Chairman of Berkshire Hathaway, has helped shape the thinking of a generation of investors with his simple but profound observations on investing, human behavior, and business. In Poor Charlie’s Almanack, Peter Kaufman brings together the best of Munger’s writings, speeches, and interviews, arranged thematically under such headings as “The disciplines of wealth creation” and “Behavioral economics and business.” With an introduction by Ed Wexler and an afterword by Kaufman, this revised and the expanded third edition of Poor Charlie’s Almanack is an essential guide for anyone seeking to apply Munger’s thinking to their own investment decisions.
Table of Contents:
1. Introduction
2. The Disciplines of Wealth Creation
3. Behavioral Economics and Business
4. The Psychology of Human Misjudgment
5. Investing
6. Business
7. Life
8. Advice for Young People
9. Afterword
10. Conclusion
1. Introduction
In Poor Charlie’s Almanack, Peter Kaufman brings together the best of Munger’s writings, speeches, and interviews, arranged thematically under such headings as “The disciplines of wealth creation” and “Behavioral economics and business.” With an introduction by Ed Wexler and an afterword by Kaufman, this revised and the expanded third edition of Poor Charlie’s Almanack is an essential guide for anyone seeking to apply Munger’s thinking to their own investment decisions.
2. The Disciplines of Wealth Creation
In this section, Kaufman brings together Munger’s thoughts on the disciplines of wealth creation, including the need to save and invest early and often, the importance of compounding, and the dangers of leverage. Munger also offers his insights on the role of luck in investing and the importance of having a margin of safety.
3. Behavioral Economics and Business
In this section, Kaufman brings together Munger’s thoughts on the role of behavioral economics in business and investing. Munger discusses such topics as the importance of incentives, the role of emotion in decision-making, and the power of sunk costs.
4. The Psychology of Human Misjudgment
In this section, Kaufman brings together Munger’s thoughts on the psychology of human misjudgment. Munger discusses such topics as confirmation bias, the sunk cost fallacy, and the power of anchoring.
5. Investing
In this section, Kaufman brings together Munger’s thoughts on investing. Munger discusses such topics as the importance of diversification, the dangers of market timing, and the importance of thinking like an investor, not a speculator.
6. Business
In this section, Kaufman brings together Munger’s thoughts on business. Munger discusses such topics as the importance of focus, the power of compound interest, and the dangers of over-diversification.
7. Life
In this section, Kaufman brings together Munger’s thoughts on life. Munger discusses such topics as the importance of taking responsibility for one’s own happiness, the power of positive thinking, and the dangers of self-pity.
8. Advice for Young People
In this section, Kaufman brings together Munger’s thoughts on advice for young people. Munger discusses such topics as the importance of hard work, the power of learning from one’s mistakes, and the dangers of starting out in life with too much debt.
9. Afterword
In afterword, Kaufman brings together Munger’s thoughts on the importance of giving back. Munger discusses such topics as the importance of helping others, the power of philanthropy, and the dangers of becoming too self-centered.
10. Conclusion
In conclusion, Kaufman brings together Munger’s thoughts on the importance of applying his thinking to one’s own life. Munger discusses such topics as the importance of living below one’s means, the power of investing in oneself, and the dangers of becoming too comfortable with one’s success.