📘 "Poor Charlie's Common Sense" - The Complete Works of Charles T. Munger's Thinking Wisdom

Hello everyone~ Today I want to share with you a classic work that is regarded as the "wisdom of life" by countless investors - "Poor Charlie's Almanack" 🎓💡.

This book features speeches, articles, and interviews by Charlie T. Munger, Vice Chairman of Berkshire Hathaway and Warren Buffett's golden partner. He is not only a master investor but also a thinker and philosopher. The title pays homage to the American publication "Poor Richard's Almanack," suggesting a "guidebook to modern life" that blends wisdom, experience, and humor.

The author feels that although this book is thick, it is truly "full of gems" when read. It is not only a must-read for investors, but also for anyone who wants to improve their thinking and make better life decisions!

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📖 Book Background

1. About the Author

• Charles T. Munger , born in 1924, is a famous American investor, lawyer and philanthropist.
• Vice Chairman of Berkshire Hathaway, known as the "brain engine" behind Buffett.
• His most famous concept is the "interdisciplinary thinking model", which believes that in order to make good decisions, one must know how to combine knowledge from multiple fields.

2. Book Features

• It includes many speeches by Munger, including the famous "A Secular View of Secular Wisdom".
• Topics cover investment, psychology, economics, and life philosophy.
• Edited and compiled by Peter D. Kaufman, with illustrations and comments to make the content more readable.

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💡 The core concept of the book

1. Common Sense

Munger believes that many failures in the world are not due to lack of knowledge, but to violations of common sense.

• Don't be greedy when investing and don't blindly follow the trend.
• Don't be arrogant, stay humble.
• Success often comes from "avoiding stupidity" rather than "pursuing intelligence."

👉 I think this is quite true, because in the Hong Kong investment market, we often see people "speculating to the limit" and losing everything in the end.

2. Mental Models 🔧

• Knowledge in one subject alone is not enough; one needs to have cross-disciplinary knowledge.
• Munger recommends mastering basic models such as psychology, mathematics, economics, and biology, and combining them to analyze problems.
• "To a man with only a hammer, every problem looks like a nail."

3. Avoid Biases 😵

Munger places special emphasis on human psychological weaknesses:

• Bandwagon effect : buy what others buy.
• Confirmation bias : only accepting information that supports one's own views.
• Overconfidence : Overestimating one's own judgment.
• Jealousy : Making wrong decisions due to comparison.

👉 Munger said that successful investors must know how to "go against human nature."

4. Long-termism

• When investing or being a person, you need to have a long-term vision.
• With compound interest thinking, time is your greatest friend.
• "The most important thing in life is to be in the right position and not be depressed for a long time."

5. 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."
• The idea is to avoid obvious mistakes rather than pursue a "one-shot win."
• Many financial disasters and life failures actually have signs already, but people choose to ignore them.

6. Simplicity and Discipline ⚖️

• Investment strategies don’t need to be complicated, simple and stable will do.
• You need to have strict discipline, such as "only invest in things you truly understand."

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📊 The best speeches in the book

A Secular View of Secular Wisdom

• One of Munger's most classic speeches.
• Proposes a "Psychological Bias Inventory" to explain why humans often make irrational decisions.
• It emphasizes the use of interdisciplinary knowledge to correct human weaknesses.

Investment Philosophy

• Investing is not about chasing hot stocks, but about finding "excellent companies + reasonable prices."
• Advocate "value investment" and "margin of safety".

Wisdom of Life

• A successful life = good habits + discipline + avoiding stupidity.
• Wealth is only part of the story; what's more important is being honest and trustworthy.

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🌍 The inspiration that Poor Charlie's Common Sense brings to Hong Kong people

In investment

The Hong Kong market is full of speculation, and everyone is chasing quick money, but Munger reminds us:

• Investing requires long-term thinking.
• We must avoid human weaknesses, especially "following the stock market trend."

In life

Hong Kong people live at a fast pace and tend to ignore "common sense".

• Health and family are as important as finances.
• Living a simple life and focusing on long-term goals is more practical than pursuing short-term excitement.

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🤔 What do you think?

The editor feels that "Poor Charlie's Common Sense" is not just an investment book, but a "philosophy of life book."
After reading it, you will find that the wisdom that Munger talks about is applicable to investing, work, and life.

He taught us:

• There is no need to pursue "smartness" all the time, but to avoid "stupidity".
• You don't need to be good at everything, but you do need to be able to think across disciplines.
• There is no need to rush for quick success, but to patiently wait for the power of compound interest.

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🎉 Editor’s Summary

The core points of Poor Charlie's Common Sense:

• Success relies on "common sense" rather than advanced theory🧠
• Establish a multi-faceted thinking model and learn across disciplines🔧
• Recognize psychological biases and go against human nature😵
• Long-termism + compound interest thinking 📆
• It is more important to avoid stupidity than to pursue intelligence🚫
• Simplicity, discipline, and integrity are the greatest assets in life⚖️

👉 So next time you want to improve your investing skills or make better decisions in life, don't just read boring theory books. Why not open "Poor Charlie's Common Sense" and you'll find that true wisdom is "common sense + discipline + long-term persistence"! 📘✨