Money and Finance
- Charlie Munger And Circle Of Competence...
From Charlie Munger: The Complete Investor:Munger has a range of approaches he uses to avoid mistakes. To make this point by analogy, Munger is fond of saying that he wants to know where he will die so he can intentionally never go there. His friend...
- Improving Rationality...
Someone over at the Corner of Berkshire & Fairfax posted their question and Charlie Munger's answer from yesterday's Daily Journal Meeting this is worth repeating here as well: Hi Charlie, I'm JD from Phoenix. At Berkshire last...
- Finding The Balance Between Curiosity And Focus...
From Charlie Munger: The Complete Investor: "Curiosity can provide both fun and wisdom, and occasionally trouble." —CHARLIE MUNGER, POOR CHARLIE’S ALMANACK, 2005 Curiosity about life and restraint about difficult decisions are part of Munger’s...
- More From Warren Buffett On Having Good Filters...
Via the notes from the Ivey MBA and HBA student meeting with Warren Buffett: At Berkshire we have certain filters that have been developed. If in the course of a presentation or evaluation part of a proposal[,] an idea hits a filter then there is no way...
- Warren Buffett Quotes (defining What You Don't Know)
This is a great example of Peter Bevelin pulling complementary quotes together from different Warren Buffett letters to shareholders in his new book, A Few Lessons for Investors and Managers. The book also includes thoughts from Peter that add to the...
Money and Finance
A few related quotes...
As I came across the Russo quote below again, I was reminded of a few others, so I thought I'd group them together.
From Tom Russo:
…what I have observed about the really great investors is the simple decisions that they end up having to make by virtue of focusing on what’s important and what’s unknowable.
From Henry David Thoreau:
It’s not what you look at that matters, it’s what you see.
From Poor Charlie's Almanack:
Don’t overlook the obvious by drowning in minutiae
From Li Lu's forward to the Chinese edition of Poor Charlie's Almanack:
...the true insights a person can get in life is still very limited, so correct decision-making must necessarily be confined to your "circle of competence". A “competence” that has no defined borders cannot be called a true competence. How do you define your own circle of competence? Charlie said, if I want to hold a view, if I cannot refute or disprove this view better than the smartest, most capable, most qualified person on Earth, then I’m not worthy of holding that view. So when Charlie truly holds a certain point of view, his thinking is not only original and unique, but also almost never wrong.
A beautiful lady once insisted that Charlie use one word to sum up the source of his success, Charlie said it was being “rational.” However, he has a more stringent definition of rationality. It is this kind of “rationality” that grants him the sensitive and unique vision and insight. Even in a completely unfamiliar territory, with just one look he could see through to the essence of things. Buffett calls this characteristic of Charlie the “two-minute effect” -- he said Charlie can, in the shortest time possible, unravel the nature of a complex business and understand it better than anyone else can.
- Charlie Munger And Circle Of Competence...
From Charlie Munger: The Complete Investor:Munger has a range of approaches he uses to avoid mistakes. To make this point by analogy, Munger is fond of saying that he wants to know where he will die so he can intentionally never go there. His friend...
- Improving Rationality...
Someone over at the Corner of Berkshire & Fairfax posted their question and Charlie Munger's answer from yesterday's Daily Journal Meeting this is worth repeating here as well: Hi Charlie, I'm JD from Phoenix. At Berkshire last...
- Finding The Balance Between Curiosity And Focus...
From Charlie Munger: The Complete Investor: "Curiosity can provide both fun and wisdom, and occasionally trouble." —CHARLIE MUNGER, POOR CHARLIE’S ALMANACK, 2005 Curiosity about life and restraint about difficult decisions are part of Munger’s...
- More From Warren Buffett On Having Good Filters...
Via the notes from the Ivey MBA and HBA student meeting with Warren Buffett: At Berkshire we have certain filters that have been developed. If in the course of a presentation or evaluation part of a proposal[,] an idea hits a filter then there is no way...
- Warren Buffett Quotes (defining What You Don't Know)
This is a great example of Peter Bevelin pulling complementary quotes together from different Warren Buffett letters to shareholders in his new book, A Few Lessons for Investors and Managers. The book also includes thoughts from Peter that add to the...