Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger by Charlie Munger
Fundamentally, Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger by Charlie Munger is an encyclopedia of information on what it takes to be successful and great at whatever you want to do in life, all from a very successful and extremely well-read (and connected) 90-ish year old billionaire!
To be clear, this is not a book you can read quickly, but rather one you spend quality time with every day for a couple of months. You'll have a better chance of remembering all of Charlie's pearls of wisdom this way. One of the best parts of this book is the abundance of quotes from successful entrepreneurs, historians, and philosophers whose ideas and writings have stood the test of time.
The following are three key takeaways from the book:
- Charlie knows no wise people who do not read constantly. But it is more than just reading; one must collect ideas and act on them. Most people do not recognize ideas, and if they do, they are unsure what to do with them.
- Charlie does not believe in diversification when it comes to investing. His advice is to pick three good company stocks and invest accordingly. Interesting approach, given that most financial advisors usually advise the opposite.
- Self-pity is always counter-productive; it is the incorrect way of thinking. And avoiding it gives you a significant advantage over everyone else, or almost everyone else, because self-pity is a common response. You can also train yourself out of it.
You will learn about the following topics:
- Why focusing on a single discipline is a fatal mistake
- Why is avoiding mistakes preferable to pursuing victories?
- How learning from other fields can help you make better decisions
- Inversion's one-of-a-kind power
- Why you should avoid envy
- The psychology of human error
Author: Peter D. Kaufman
Link to buy: https://www.amazon.com/Poor-Charlies-Almanack-Charles-Expanded/dp/1578645018/
