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8/19/2019 Poor Charlie’s Almanack - Summary
1/4
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8/19/2019 Poor Charlie’s Almanack - Summary
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Thatsoundsfunny, making friendsamong'theeminentdead,'but if
you gothrough life making friends with
theeminentdeadwhohadthe
rightideas,Ithinkitwillwork better foryouin lifeandworkbetter
in
education.It's way betterthan justgiving
thebasicconcepts."
I thinkyou learn economicsbetter
ifyoumakeAdamSmithyourfriend.
Thatsoundsfunny, making friendsamong'rheeminentdead,'but if
you gothrough life making friends with
theeminencdeadwhohadthe
rightideas,Ithinkitwillwork better foryouin lifeandworkbetter
in
education.It's way betterthan justgiving
thebasicconcepts."
“Our experience tends to conform a long-held notion that
beingprepared, on a few occasions in a lifetime, to act promptly in
scale, indoing some simple and logical thing, will often
dramatically improve thenancial result of that lifetime.
“A few major opportunities, clearly recogniable as such, will
usuallycome to one who continuosly searches and waits, with a
curious mindthat loves diagnosis involving multiple variables.
“And then all that is re!uiered is a willingness to bet heavily
when theodds are extremely favorable, using resources available as
a result ofprudence and patience in the past."
- #harles $. %unger
Justasanimalsfourish
inniches,peoplewhospecializeinsomenarrow
nichecandoverywell.
"Youmust know the bigideasin the big disciplines
andusethemroutinely-allof them, not
justaf'ew. Most
peoplearetrainedinonemodel-economics,forexample-and trytosolve
all problemsinone way. You know the old saying:'Tothe
manwithahammer, theworld
looks likeanail.'Thisis adumb way of handling problems."
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8/19/2019 Poor Charlie’s Almanack - Summary
3/4
"Soifyour professorswontgiveyou an
appropriatemultidisciplinaryapproach,if
eachwants tooverusehis own models and underuse
theimportantmodelsin
other disciplines,youcan correct thatfollyyourself."
"Thebookthatrestson my librarycoffee table
isnotPeterLynch'sBeating tbe
Sneetorevenmy own,
butseveralboolsbyhistorianPaulJohnsononthe
makingsofthenineteenthandtwentiethcenturies.
"Thereis nobetterteacherthan history in
determiningthefuture....Thereare
answersworthbillions ofdollarsina$30historv book."
Whenfaithfullyadheredto,thesetraitsresultinoneof the best-
known Mungercharacteristics:notbuying orselling aer! often
Patience:TheArtof"'W'aiting'WithoutTiring of'Waiting"
"Lookat those hedgefunds-you thinktheycanwait?They don't know
how towait!In
my personalportfolio, Ihave sat foryearsat
atimewith$10to$12million
intreasuriesormunicipals, justwa-iting,waiting....
'AsJesse
Livermore said''Thebig moneyisnotinthe buying and
selling...butinthe
waiting."'
"Ittakes character to sit therewithall thatcashand do nothing.I
didn'tget to *{rereIam
by going after mediocre opportunities."
-Munger
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8/19/2019 Poor Charlie’s Almanack - Summary
4/4
"Tous, investing is the equiralentofgoing out and betting
against the paxi- mutuel
rystem.lW'elookforahorsewithone chance in rwo ofwinningand
whichpaysyou three
toone,You're lookingforamispricedgamble.Thattwhat
investingis.And you havetoknow enough to know whether the gamble
ismispriced.That's value investing."
