📘 "Poor Charlie's Almanack" - compiled by Peter D. Kaufman, the complete collection of Charlie Munger's thoughts

Hello everyone~ Today I want to share with you a classic book that is regarded as a "wisdom book" by the investment and management circles - "Poor Charlie's Almanack" ✨.

Edited by Peter D. Kaufman , this book primarily compiles speeches, articles, quotes, and life wisdom from Berkshire Hathaway Vice Chairman Charles T. Munger . Warren Buffett's golden partner, known as the "Sage behind the Sage of Omaha," Munger often maintains a low profile, but his thinking has profoundly influenced Berkshire Hathaway's investment strategy and corporate culture.

I believe that "Poor Charlie's Almanack" is more than just an investment book; it's a comprehensive guide to interdisciplinary thinking, life philosophy, and behavioral psychology . After reading it, you'll discover that the most important principles for wealth, investing, and life are common sense, discipline, and cross-disciplinary wisdom.

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📖 Book Background

1. Authors and Editors

• Charles T. Munger : Born in 1924, Vice Chairman of Berkshire Hathaway, a lawyer by profession, who later became an investment guru.
• Peter D. Kaufman : The editor of this book compiled Munger’s speeches and wisdom over the years into a book, and added illustrations and cases to make it easier for readers to absorb.

2. Book Features

• Includes Munger's classic speeches (especially "The Psychology of Human Misjudgment").
• Combining theory, stories and humor, the content is vivid and profound.
• The title of the book pays tribute to Poor Richard's Almanac, implying a treasure trove of wisdom for modern people.

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💡 The core concept of the book

1. Mental Models

One of Munger's most important concepts.

• You can't just rely on knowledge from a single subject.
• It is necessary to establish cross-disciplinary thinking models, such as psychology, mathematics, economics, and biology.
• By combining knowledge from different disciplines, you can make better decisions.

👉 I feel this concept is particularly useful for Hong Kong people, as we often focus on our "professionalism" but overlook cross-disciplinary thinking.

2. Psychology of Human Misjudgment 😵

Munger has summarized more than 20 common psychological biases, such as:

• Bandwagon effect
• Confirmation bias
• Overconfidence
• Loss aversion
• Jealousy

He reminds everyone: Human nature is often the biggest enemy in investing and life. To succeed, you must learn to recognize and control your own psychological biases.

3. Avoiding stupidity is more important than pursuing intelligence 🚫

• Munger famously said: "I just want to know where I'm going to die and never go there."
• Meaning: Success lies in avoiding big mistakes, not in making earth-shatteringly smart decisions.
• When investing, we must control risks and maintain a safety margin.

4. Long-termism and compound interest 📆

• Investing success depends on patience and making friends at the same time.
• Munger emphasizes the compound interest effect and believes that the greatest wisdom in life is to "sit in the right position and not be depressed for a long time."
• Don't chase short-term quick money, focus on long-term value.

5. Honesty and simplicity ⚖️

• Regardless of whether you are an investor or a customer, integrity is the most important asset.
• Investment strategies do not need to be complicated; simple and stable ones are more reliable.

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📊 Wonderful speeches and chapters in the book

The Psychology of Human Misjudgment

• One of Munger's most classic speeches, it explains in detail how psychological biases affect decision-making.
• For example: Why are investors so easily influenced by trends? Why do people keep placing bets even when they know they will lose?

A Secular View of Secular Wisdom

• Promote interdisciplinary learning and emphasize the value of "common sense".
• Explain why truly intelligent people are not experts but those who know how to integrate knowledge.

Speech on Investment and Life

• When talking about the concept of "margin of safety", investors are reminded not to take excessive risks.
• Also share the philosophy of life: avoid stupidity, stay humble, and be willing to learn.

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🌍 The inspiration that "Poor Charlie's Almanack" brings to Hong Kong people

In investment

• Speculation is rampant in the Hong Kong market. Munger reminds everyone to have a long-term perspective and not be led by short-term fluctuations.
• You need to know how to "go against human nature", for example, stay calm when the market is falling.

In the workplace

• A single skill may not be enough, and cross-disciplinary integration of knowledge is required.
• For example: understanding psychology can improve negotiation skills, and understanding mathematics can improve risk management.

In life

• Hong Kong people live under great pressure and are prone to anxiety due to comparison.
• Munger reminds: Avoid jealousy, focus on your own progress, and you will live a happy life.

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🤔 What do you think?

The editor feels that "Poor Charlie's Almanack" is not a "fast-food" financial management guide, but a book of wisdom that needs to be chewed slowly.
Its value is not to tell you "which stock to buy", but to teach you how to think, how to make decisions, and how to be a human being .

After reading this book, you may not become an investment expert immediately, but you will definitely become a more rational, calmer and wiser person .

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🎉 Editor’s Summary

The core message of The Poor Charlie's Almanack:

• Interdisciplinary thinking model , integrating knowledge from multiple fields🧠
• Human psychological biases , learn to identify and overcome them 😵
• Avoid stupidity > pursue wisdom 🚫
• Long-termism + compound interest , time is your greatest friend📆
• Honesty, simplicity and humility are the greatest assets in life⚖️

👉 So next time you're thinking about learning about investing, or wanting to improve your life wisdom, don't just chase after the "secret to getting rich." Instead, open up "Poor Charlie's Almanack" and you'll discover: the real treasure isn't in the skills, but in the way you think ! 📘✨