A resource page devoted to Charlie Munger page has been added to ValueWalk.
2. I will be adding some new calculators to the site this week or the next one. I just added a mobile site. More announcements to follow.
3. I will be adding 1-2 investor resource pages a week.
Below is a partial excerpt followed by link to full page, which can also be found under Value investors-> http://www.valuewalk.com/resource-page-2/legendary-value-investors/ ->http://www.valuewalk.com/charlie-munger-page/).
Warren Buffett’s “Partner” and Right Hand
HE DISCOVERED ‘LOLLAPALOOZA’ EFFECT
a lollapalooza effect is a combination of factors, filtered through multidisciplinary models that lead to an outstanding result.
ONE OF THE FINEST INVESTORS
Vice-Chairman of Berkshire Hathaway Corporation
Chairperson of Wesco Financial Corporation
Chairperson of the Daily Journal Corporation
An American Shareholder, Attorney, Business tycoon, and Philanthropist
Charlie Munger is the Chairperson of Wesco Financial and of Berkshire Hathaway, where his lasting partner Warren Buffett serves as Chairperson. Buffett and Munger both are native of Omaha, Nebraska. After studying mathematics at the University of Michigan, and serving the U.S. Army Air Corps in the capacity of a meteorologist, he entered Harvard Law School without an undergraduate degree. After graduating in 1948 with a Juris Doctor Magna cum laude, he founded Tolles & Olson LLP and worked as a real estate attorney, until 1965. He then gave up the practice of law to give attention to managing investments.
He has given an investment and business related idea of “Elementary, Worldly Wisdom,” that is comprises of set of mental models, required to give solution of any business related problems. Mental models reflect his business philosophy. He states that for a success in business one should be fair, all businesses based on unethical strategies, collapse in the end. He believes that American citizens have to face impoverished financial situation in future because of erroneous banking structure. He used a term “Lollapalooza Effect” for a situation when numerous prejudices, inclinations, or mental models are active at allied instant and trend. He considers Tupperware parties and open outcry auctions as a best example for the situation of “Lollapalooza Effect.” In March 2003, Rich Rockwood published a paper on The Munger Network of Mental Models.
Charlie Munger is most of the time in the shadow of his partner, Warren Buffett.
Here are some quotes from Munger on the topic:
“We read a lot. I don’t know anyone who’s wise who doesn’t read a lot. But that’s not enough: You have to have a temperament to grab ideas and do sensible things. Most people don’t grab the right ideas or don’t know what to do with them.” http://www.tilsonfunds.com/brkmtg04notes.doc
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero. You’d be amazed at how much Warren reads – at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”
“…by regularly reading business newspaper and magazines I am exposed to an enormous amount of material at the micro level.. I find that what I see going on there pretty much informs me about what’s happening at the macro level.”
Below are a list of 20 books recommended by Munger and three books about Charlie Munger. I have not read it, but have heard from many that Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger is by far the best book on Munger.
BOOKS RECOMMENDED BY CHARLIE MUNGER
- Fiasco: The Inside Story of a Wall Street Trader by Frank Partnoy
- Ice Age by John & Mary Gribbin
- Deep Simplicity by John Gribbin
- How the Scots Invented the Modern World: The True Story of How Western Europe’s Poorest Nation Created Our World & Everything in It by Arthur Herman
- Models of My Life by Herb Simon
- A Matter of Degrees: What Temperature Reveals about the Past and Future of Our Species, Planet, and Universe by Gino Segre
- Andrew Carnegie by Joseph Frazier Wall
- Guns, Germs, and Steel: The Fates of Human SocietiesJared Diamond
- The Third Chimpanzee by Jared Diamond
- Influence: The Psychology of Persuasion by Robert B. Cialdini
- Autobiography of Benjamin Franklin
- Living within Limits: Ecology, Economics, and Population Taboos by Garrett Hardin
- The Selfish Gene by Richard Dawkins
- Titan: The Life of John D. Rockefeller, Sr., Sr. by Ron Chernow
- The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor by David S. Landes
- The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert Hagstrom
- Genome: The Autobiography of a Species in 23 Chapters (P.S.) by Matt Ridley
- Getting It Done: How to Lead When You’re Not in Charge by Roger Fisher and Alan Sharp
- Three Scientists and Their Gods: Looking for Meaning in an Age of Information by Robert Wright
- Only the Paranoid Survive by Andy Grove
BOOKS ON and By CHARLIE MUNGER
Seeking Wisdom: From Darwin to Munger by Peter Bevelin (2008)
Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger by Peter D. Kaufman (2008)
Damn Right: Behind the Scenes with Berkshire Hathaway Billionaire Charlie Munger by Januaret Lowe (2003)
Of Permanent Value by Andrew Kilpatrick