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This book has 2629 pages.

Reading duration: 1 hour 10 minute.

Charles Munger's Poor Charlie's Collection: Charles Munger's Wisdom Proverbs is Warren Buffett's golden partner.

This book imitates Benjamin Franklin's Poor Richard's Yearbook. Franklin spread many useful and eternal suggestions. The virtues he praised included frugality, responsibility, diligence and simplicity, and what he suggested became a must for Charles Munger.

Charles Munger tells readers how to gain universal wisdom and adjust their behavior accordingly, even if your maverick makes you unpopular in the crowd … so be it.

This mode of thinking should span many disciplines.

You must master these very basic mathematical knowledge and use it frequently in your life. You must be able to deal with numbers and quantities, that is, basic math problems. Besides the principle of compound interest, a very useful thinking mode is the basic principle of permutation and combination. Which thinking modes are the most reliable? The answer is obvious, those thinking models from hard science and engineering are the most reliable thinking models on earth.

You should also master accounting.

Observe the "five noes" principle-you must explain who did what when and where.

After all, we are all the same in genetic structure.

More complicated. But psychology is too important to have any universal wisdom.

In another place, the author puts forward the argument that although many psychology textbooks are full of glitter, they are mostly rubbish. Today's psychology is a bit like electromagnetism after Faraday and before Maxwell-many principles have been discovered, but no one has integrated them in the right way. Someone should have done such a thing a long time ago, because it is not difficult-and it is very important. The psychology textbook doesn't say jealousy? ! No simple psychological denial? Didn't talk about the prejudice caused by the incentive mechanism? ! Psychological textbooks also pay insufficient attention to the multi-factor combination effect.

Master all the major psychological models and use them as a checklist to check the results of various complex systems.

The close relationship between morality and universal wisdom involving psychology cannot be overemphasized.

Before using those skills equipped with basic psychological strength, one thing needs special attention: after you know what to do, you must adjust your behavior according to moral norms. It doesn't mean that you can manipulate people at will after you know how to manipulate them.

I find it a useful way of thinking to regard the free market economy or part of it as an ecosystem. The great significance of microeconomics is that people can tell when technology will help you and when it will destroy you.

Animals can reproduce in the right place, and so can those who focus on a certain field in business-and become very good because of their focus.

So much for the basic microeconomic model, plus a little psychology and mathematics, which constitutes the universal foundation of what I call universal wisdom.

You should master the main models of various disciplines and use them all-at that time, I really appealed to you to ignore the legal boundaries of disciplines.

You don't need to know all the knowledge, you just need to absorb the best ideas in all disciplines. This is not difficult to do.

If you train yourself to be more objective and have more subject knowledge, you can be more powerful than those who are much smarter than you when considering things. I think it's interesting. ...

Humans have invented something to make up for our natural inability to deal with numbers. This kind of thing is called a chart. Charts show numbers graphically. It uses your nervous system to help you understand it.

In addition to using a variety of thinking modes from different disciplines, I would also like to add that,

Each of you must find out what talent you have. You must give full play to your advantages. But if you want to succeed in areas you are not good at, your life may be a mess. I can assure you. If not, you must have won the lottery or met other very lucky things.

It is not enough to have good opportunities. They must be in areas that we can understand, so there must be opportunities to set the wrong price in areas that we can understand. This kind of opportunity doesn't come very often.

We don't have a set of methods to judge all investment decisions. If there is, it would be ridiculous. I'm just giving you a way to look at reality so as to get a few chances to react rationally.

I don't want you to think that we have any way to learn or do things so that you don't make many mistakes. I'm just saying that by studying, you can make fewer mistakes than others-and after you make mistakes, you can correct them faster. But it is impossible to live a rich life without making many mistakes.

You should find out what you know and what you don't know. Is there anything more useful in life?

If you use your head to understand a truth, you will remember it better. As long as you become a person who can think correctly, you can create added value. As long as we grasp the correct way of thinking, be brave and do our duty, we can create great added value. As long as you can prevent or stop some stupid things that will destroy your company, customers or things you care about, you can create great added value.

This ability is innate, but he often admits this talent.