You must know the big ideas in the big disciplines and use them routinelyall of them, not just a few. Well, the first rule is that you cant really know anything if you just remember isolated facts and try and bang em back. Munger, there are about 100 or so models across the disciplines of microeconomics, physiology, psychology, elementary mathematics, hard science and engineering that carry about 90% of the freight in making you a worldlywise person. Each idea is a concept or model about how the world really works that can. Use features like bookmarks, note taking and highlighting while reading charlie munger. For mental models you dont know or dont know well, you can use this list as a.
Thats why poetry professors, by and large, are so unwise in a worldly sense. Mental models introduction youve got to have models in your head and youve got to array your experience both vicarious and direct onto this latticework of mental models. Charlie munger and the latticework of mental models. Charlie mungers old charlies almanack outlines at a high level mungers use of a latticework of mental models follow this process to success. The importance of multiple mental models from poor charlie s almanack, and what i think is the single most important idea i carry with me when it comes to going through life. The top 100 mental models inspired by charlie munger. Its his secret weapon for making decisions, succeeding in business, and choosing winning investments. I could try to explain his thoughts on worldly wisdom, but i would fail miserably. May 5, 1995 the theory of modern education is that you need a general education before you specialize. Life lessons, success, principles and mental models from a titan of finance. Munger, along with buffett, is one of the main inspirations behind the book seeking wisdom. Poor charlies almanack by charlie munger book summary and pdf. The psychology of human misjudgement charlie munger full.
Mental models, investing, and you special ebook according to mr. Here is what charlie munger on the importance of mental models in our lives you must know the big ideas in the big disciplines, and use them routinely all of them, not just a few. Charlie munger refers to a latticework of about 100 mental models that he and warren. Jan, 20 audio of the often referred to speech by charlie munger on the psychology.
The munger network of mental models 23 page article, release date. This idea of a latticework comes charlie munger, cochairman of berkshire hathaway. Charlie munger, berkshire hathaways visionary vice chairman and warren buffetts indispensable. Audio of the often referred to speech by charlie munger on the psychology. Charlie mungers unique approach to being an expertgeneralist developing the habit of mastering the multiple models which underlie reality is the best thing you can do.
Much of life can be understood by developing mental models and systems. There are more than 1 million books that have been enjoyed by people from all over the world. Poor charlies almanack is a collection of charlie mungers best advice given over 30 years, in the form of 11 speeches given as commencement addresses and roundtable talks. There are obviously positive aspects to this tendency for society, but they rarely have place in making investment decisions. His notion of elementary, worldly wisdom a set of interdisciplinary mental models involving economics, business. Always update books hourly, if not looking, search in the book search column. This is the first book you should read if you want to learn more about a latticework of mental models and elementary world. The talks with checklists of mental models he uses in the checklist, the psychology behind every models and antidotes he found that helps to control influence caused by particular models. One of the best ways to do this is to expand the set of mental models you use to think. In a famous speech in the 1990s, charlie munger summed up the approach to practical wisdom through understanding mental models by saying.
Munger, vice chairman of berkshire hathaway, is warren buffetts partner at. Munger by peter kaufman this is the first book you should read if you want to learn more about a latticework of mental models and elementary world wisdom. Mungers worldly wisdom consists of a set of mental models framed as a latticework to help solve critical business problems. The psychology of human misjudgment 2005 pdf hacker news. There are some outstanding resources for learning about mental modeling, including this guide from farnham street and this writeup by annelaure le cunff at ness labs. And, of those, only a mere handful really carry very heavy freight. The phrase latticework of mental models comes from berkshirehathaways charles munger, who is a person that has spent most of his life working out ways to, for lack of a better term, think better.
In a speech that munger gave at usc business school in 1994, he started to delve into this idea of a latticework of mental models. Apr 01, 2018 the mental models approach helps you understand reality. Where can i find charles mungers mental models or a guess, since. The munger network of mental models 23 page article. Munger points out that if you dont master the multidisciplinary approach of such mental constructs, you will remain in the middle ranks or shallows in life. Berkshire hathaway vice chairman, charlie munger, says this. Mar 20, 2017 in a speech that munger gave at usc business school in 1994, he started to delve into this idea of a latticework of mental models. The best way to make intelligent decisions 1 models explained i also stumbled upon a document consisting of the best of charlie munger from 1994 to 2011. Get ebooks the great mental models volume 2 on pdf, epub, tuebl, mobi and audiobook for free. Learn how charlie mungers system of mental models helped the contrarian.
I first learnt about mental models from reading about warren buffetts business partner charlie munger and who bill gates called the broadest thinker hes ever encountered. Charlie munger has around 100 mental models in his head that he uses to interpret events and the world around its his mental latticework. In all his talks, he shows wit, rationality, and incredible clarity of thought. Charlie munger has spoken a lot about mental models and their use in thinking better. And i think to some extent, before you are going to be a great stock picker, you need some general education. Also, charlie frequently mentions inversion as one of the most powerful mental models.
I figured there is no full set of these mental models he does. The importance of multiple mental models from poor charlies almanack, and what i think is the single most important idea i carry with me when it comes to going through life. Transcripts of lectures munger gave at various periods in different places. There are obviously positive aspects to this tendency for society, but they. It has been attributed to warren buffett and charlie munger and can be summed up as follows. Mar 01, 2017 finally, charlie munger believes that the highest form which civilization can reach is a seamless web of deserved trust. May 11, 2018 charlie munger has spoken a lot about mental models and their use in thinking better. If the facts dont hang together on a latticework of theory, you dont. The mental models approach helps you understand reality. Around 2003 i came across charlie mungers 1995 speech. Systems, models, and tools for and by smart people free pdf.
Jul 25, 2016 also, charlie frequently mentions inversion as one of the most powerful mental models. That is, charlie believes that understanding the fundamental foundations of as many different disciplines as one can improves ones. In this summary of poor charlies almanack, ive extracted the most important points. You look at things through a different lens to try to see what can be different mohnish pabrai you have to be naturally interested and curious about everything any kind of businesses, politics, science, technology, humanities, history, poetry, literature. Mental models are what charlie munger refers to the key ideas in each discipline. Without a latticework of models, youll fail in school and life. He believes that it is through the application of models in a varied range of settings in life that genuine learning takes place. To second garys recommendation, mungers poor charlies almanack is a pretty good resource for you here. And the models have to come from multiple disciplinesbecause all the wisdom of the world is not to be found in one little academic department. A lesson on elementary, worldly wisdom charlie munger. After many hours of research, i have sorted through more than 1,000 mental models and distilled them into a short list of the most important mental.
A lesson on elementary, worldly wisdom as it relates to. And when you understand things at a deeper level you make better decisions. The phrase latticework of mental models comes from berkshirehathaways charles munger, who is a person that has spent most of his life working out ways to, for lack of a better term, think better munger has come to the conclusion that in order to make better decisions in business and in life, you must. He has a list of these ideas mental models in his mind and quickly picks the ones applicable to the given situation, much as a pilot automatically goes through a checklist prior to takeoff. Latticework of mental models building a better invsting mind. The series consists of four volumes that cover the core, timeless, ideas that you should have learned in school and applies them to real life. A list of top 100 mental models for business by rob d.
Jul 06, 2016 mental models i find repeatedly useful. In multiple speeches, and in the book poor charlie s almanack. One model that is highly suitable for making better decisions is the circle of competence. Charlie mungers remarks on mental routines youtube. Charlie munger and his mental models decoding markets. Munger is one of the greatest crossdisciplinary thinkers in the world. Not much procedure just totally reliable people correctly trusting one. Life lessons, success, principles and mental models from a titan of finance kindle edition by thorniley, dave. A dozen things ive learned from charlie munger about. I first discovered what a mental model was and how useful the right one could be while i was reading a story about richard feynman, the. The two best books ive found on charlie munger and mental models are both published by intermountain books poor charlies almanack. To quote charlie munger, 80 or 90 important models will carry about 90% of the freight in making you a worldlywise person.
In multiple speeches, and in the book poor charlies almanack. I will warn you though, most of the contents in that. Understand where you have expertise, knowledge, and skills. This website, inspired by the work of charles munger, provides over 100 models that can be brought consciously to mind to aid the thinking process. Mental models are deeply held beliefs about how the world works. Next steps there are some outstanding resources for learning about mental modeling, including this guide from farnham street and this writeup by annelaure le cunff at ness labs. A dozen things ive learned from charlie munger about mental models and worldly wisdom. Charlie mungers unique approach to being an expertgeneralist developing the habit of mastering the multiple models which underlie reality is. The top 100 mental models inspired by charlie munger rob kelly. In fact he credits mental models for his unusually sharp understanding of the world.
I first stumbled on mental models when i was reading the work of charlie munger, the selfmade billionaire partner of warren buffett. Mental models i find repeatedly useful gabriel weinberg. Download it once and read it on your kindle device, pc, phones or tablets. How warren buffetts billionaire deputy at berkshire hathaway. Munger and buffett recognized that learning everything about the world and how it works is impossible. What are the 100 mental models mentioned by charles munger. Most people are trained in one model economics, for example and try to solve all problems in one way. Aug 07, 2018 the two best books ive found on charlie munger and mental models are both published by intermountain books.
Here is an excellent articleblog on compilation of mental models of charlie munger 1 models as of today. I have set up a bookmarks system in the pdf file to ease your navigation, which you can access by. His notion of elementary, worldly wisdoma set of interdisciplinary mental models involving economics. While we all use mental models to think, mungers idea is to actively go and learn the big timetested ideas men. Munger s worldly wisdom consists of a set of mental models framed as a latticework to help solve critical business problems. The biography of charlie munger with annotations and references explained. Let me explain what i mean by sharing a story about a worldclass thinker.
Keep in mind, the acquiring of wisdom is a process that takes time. Jun 06, 2017 this is what charlie munger talks about the latticework of mental models. I figured there is no full set of these mental models he does say he. Charlie munger refers to a latticework of about 100 mental models that he and warren buffett credit for their successful investing. Operate in the areas where you do, stay away from the areas where you. The great mental models volume 2 ebook download free pdf.
This is what charlie munger talks about the latticework of mental models. A dozen things ive learned from charlie munger about mental. Munger is pointing out that people tend to ignore or deny the faults of people they love and even distort facts to facilitate that love. The munger network of mental models focus investor. Youve got to hang experience on a latticework of models in your head. According to charlie munger, its important to have a latticework of mental models with which to hang your ideas and. How warren buffetts billionaire deputy at berkshire. In the words of charlie munger, all the wisdom of the world is not to be found in one little academic department.
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