Charlie Munger: Wisdom, Mental Models & Latticework
Beyond finance: Explore the mental models that Charlie Munger used to build Berkshire Hathaway and live a rational life.
Charlie Munger was the 'architect' behind Berkshire Hathaway's modern strategy. He convinced Buffett to stop buying "fair businesses at a wonderful price" and instead buy "wonderful businesses at a fair price."
The Latticework of Mental Models
Munger believed in "wordly wisdom"—using ideas from physics, biology, psychology, and history to make better financial decisions. He called this a Latticework of Mental Models. By understanding how the world actually works, you avoid being the "man with a hammer" to whom every problem looks like a nail.
Invert, Always Invert
Munger's favorite problem-solving technique was inversion. Instead of asking "How can I get rich?", ask "What will make me poor?" and then avoid those things (drugs, bad associates, over-leverage). By avoiding stupidity, you eventually reach success.