Charlie Munger: How One Life Hack From A Self-Made Billionaire Leads To Exceptional Success via Michael Simmons, Forbes
Countless books and articles have been written about Warren Buffett. Surprisingly few have been written about his business partner of over 40 years, Charlie Munger.
Charlie Munger has stayed out of the public eye, giving only a small number public talks, and he’s rarely been covered in the media. At Berkshire Hathaway’s annual shareholder’s meetings, he lets Buffett answer the questions, often times commenting, “I have nothing to add.”
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Beyond The 10,000 Hour Rule
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Bill Gates has said of Charlie Munger, “He is truly the broadest thinker I have ever encountered. From business principles to economic principles to the design of student dormitories to the design of a catamaran he has no equal… Our longest correspondence was a detailed discussion on the mating habits of naked mole rats and what the human species might learn from them.” Munger has, in short, been the ultimate expert-generalist.
The Rise Of The Expert-Generalist
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While the 10,000 hour rule works well in areas with defined rules that don’t change such as sports, music, and games, the rules of business constantly and fundamentally change. Being an expert-generalist allows individuals to quickly adapt to change. Research shows that they:
- See the world more accurately and make better predictions of the future because they are not as susceptible to the biases and assumptions prevailing in any given field or community.
- Have more breakthrough ideas, because they pull insights that already work in one area into ones where they haven’t been tried yet.
- Build deeper connections with people who are different than them because of understanding of their perspectives.
- Build more open networks, which allows them to serve as a connector between people in different groups. According to network science research, having an open network is the #1 predictor of career success.
Charlie Munger's Approach To Being An Expert-Generalist
In connecting the dots across the disciplines, Charlie Munger has developed a set of what he calls models, which he uses to assess investment opportunities. In fact, he’s identified over 100 of these models that he uses frequently as of the publication of Poor Charlie’s Almanack. No doubt he continues to develop and perfect them.
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