Poor Charlie's Collection-Abstract

The Collection of Poor Charlie is a compilation of Charles Munger's investment philosophy, which contains 1 1 speeches and various articles published in the past 20 years. Charles Munger and many of the truths he told in The Collection of Poor Charlie can be summarized as follows: Only by improving oneself can we strengthen our perception of the world, grow our inner abilities and match the general trend of the world. This kind of matching degree has improved, and whether you use it for investment, entrepreneurship or other things, it will be unfavorable.

? Charles Munger, Buffett's mentor and life partner, is the greatest investment thinker today. The vice chairman of Berkshire Hathaway, the fifth largest listed company in the world, has maintained a compound annual growth rate of 19.2% for 5 1 year, and Munger is one of the founders of this miracle.

? What we are going to talk about is "Poor Charlie's Collection", which is a compilation of financial tycoon Charles Munger's investment philosophy. The book contains 1 1 speeches and various articles published by him in recent 20 years. As the subtitle of this book says, this book is really "Charles Munger's wisdom motto". Hearing the word "wisdom proverbs", many people's first reaction may be "chicken soup for the soul" or success. But I must say, this is really a good book delayed by the name. Before introducing Munger's core ideas in detail, let's talk about Charles Munger.

? You may not know him very well, but you must know his partner, Warren Buffett. Some people think that Munger is actually Buffett's mentor in a sense. Buffett himself said that if anyone has the greatest influence on his investment, the first person is Benjamin Graham, who is known as the "godfather of Wall Street", and the second is Charles Munger. Charles Munger and Buffett are partners in Berkshire Hathaway, which has the highest share price in the world. On April 20 17, its share price was as high as USD 250,000. When converted into RMB, it would cost RMB 6,543,800+7,000 to buy one share. Charles Munger is the miracle worker of this super money-making company.

? 1 924 65438+1October1Munger was born in Omaha, Central America. However, as a financial giant, Munger's life was not smooth sailing: before the age of 30, he experienced financial crisis, war dropout, divorce and childlessness. For many people, if they experience such a thing, they are likely to be devastated. However, Munger was not knocked down by the ensuing sufferings and misfortunes, but tempered his own character and gradually formed his own investment wisdom in the process. In his investment career, Munger inherited the traditional spirit of the western United States, worked diligently and wholeheartedly to do good deeds, was sincere, upright and kind, and saved money to invest in the future, which won the trust of many people and made him willing to cooperate with him, thus giving him the opportunity to experience other investment businesses, and finally earned his first "65.438+100,000" in real estate business. After that, with his keen analytical and thinking abilities, he joined forces with Buffett to acquire blue-chip printing and other businesses, invested in many high-quality enterprises, and finally built his own financial empire step by step. Everyone who has contacted Munger thinks that Charles Munger's thought and his methodology, or thinking mode, are very valuable. What is Charles Munger's different wisdom in life? Next, we will focus on this part. Let me explain to you what Charles Munger's most admired "multiple thinking mode" is, and then combine his "reverse thinking method" to tell you how to use these thinking methods to build your own knowledge system. Finally, we will focus on Munger's investment strategy.

? Munger advocates learning from multiple disciplines and forming a composite framework of thinking patterns. When you only have one tool in your hand, you can only work with it, so Munger said that the most important thing is to remember a series of principles, such as compound interest principle, permutation and combination principle, decision tree theory, misjudgment psychology and so on, which together can often bring great power. This is two, three or four forces acting in the same direction, and you usually get more than the sum of several forces.

? The reason for constructing this pluralistic thinking mode is that, in Charles Munger's view, the universe is a complex whole, and all human knowledge is trying to study this complex whole, and there is no clear boundary between disciplines, but interaction. If you look at things with a single mode of thinking, you may distort reality until you conform to your own mode of thinking, and then make stupid and ridiculous mistakes. As the proverb often quoted by Charles Munger says, "The whole world is like a nail to the man with a hammer". We also have a similar old joke in China: A beggar who has been begging in the street all the year round said that if I became an emperor, I would definitely beg with a golden rice bowl. Although this joke is a bit exaggerated, it also reflects the limitations of single thinking to some extent.

? When we refer to "pluralistic thinking", we usually regard it as a methodology, but in essence, it is actually a basic attitude to understand the world, which is inclusive and systematic, that is, Munger's pluralism. Why do you say that? Let me try to explain it to you.

? Have you ever found that the more mature people are, the less they actually talk about opinions, but they are expounding opinions from different angles. What do you mean by "no opinions, only explanations"? Just facing a problem, he rarely talks about those propositions, such as what the government should do, what you do is right or wrong, who is a good person and who is a bad person ... He doesn't discuss or comment on these topics, but he is more concerned about whether there are different explanations for a phenomenon and whether it can be seen from another angle.

? Some people may say, isn't this just empty talk and no practice? On the contrary, caring about what others do is empty talk, and you are interfering with others' practice. Only by caring about the interpretation of the world from different angles can we put it into practice. In the process from subjective understanding to objective practice, you should also notice that there is a deep gap between the subjective world and the real world. There are many absolute principles in the subjective world, but there are only just actions in the objective world.

? How to understand this sentence? For example, when we go to a driving school to learn a car, we will first learn the rules and the mechanical principles of the car. These are all things in the subjective world, and you will learn a lot. But once in the car and on the road, this principle is useless. Do you think it is better to turn the steering wheel to the left or to the right at every moment of driving? None of them are right. Driving practice pays attention to "just right", not left or right. This is the practice of the objective world. In the real world, everything is like this. Writing, doing manual work, playing ball games, starting a business, etc. It is to find the right dynamic balance between two contradictory principles.

? It can be said that every educated youth has built a subjective world in his mind and knows everything. What is my task for the rest of my life? It is to constantly deal with the inconsistency between the subjective world and the objective world and constantly find the right balance point. Don't we all agree that people should be honest? This is the principle of subjective world. But why do you sometimes lie in the objective world, and it doesn't seem to be a moral flaw?

? Didn't we agree that the law pursues justice? Why in practice, the pursuit of justice by law will also calculate the cost? Didn't we agree to work hard, be good to people and have a bright future? Why do I work so hard, but I still don't get along well enough? Have you ever heard the saying, "after listening to so many reasons, I still can't get along", which is the phenomenon.

? We may fall into this gap between the subjective world and the objective world at any time. If you can climb out, it is to bridge this gap, put things that are inconsistent with our subjective world into your body, and then rebuild yourself. This process is called growth. Therefore, the faster a person grows and the older he is, the more complex and diverse things will be accommodated in his spiritual world. Therefore, Charles Munger repeatedly emphasized "multiple thinking mode" in "The Collection of Poor Charlie", and this concept of "multiple thinking" is the adhesive between the subjective world and the objective world, which is a big net to prevent us from falling into the ditch.

? Hearing this, you may understand why we said "multiple thinking" at the beginning is a basic attitude to understand the world. Why do many mature people have no opinions and only talk about explanations? Because more and more phenomenon explanations can help you grow. As an outsider, it is too easy and too cheap to comment on others, especially the practitioners who do specific things, and it is just to show off the ideas and principles that already exist in their subjective world. Although you feel good about yourself, it is not good for your growth and progress. You are actually telling others what to do. To put it into practice, we must keep an inclusive and diverse perspective, let more ideas and explanations exist in our spiritual world, and finally nourish our practice together. At this time, Charles Munger's "multiple thinking mode" is a good starting point.