Charlie Munger

The Knowledge Project with Shane Parrish · Charlie Munger's Interview with Todd Combs

• Why Did Charlie Munger See Wisdom as a Duty?

  Charlie Munger almost worships reason. Charlie Munger said you can argue that Henry Singleton did too, and certainly Warren Buffett does too. The people Charlie Munger knows that are good feel you have a duty to become as wise as you can by constantly studying and thinking about it.

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• How Does Positioning Help Berkshire Hathaway Outperform Others?

  Positioning happens earlier than decisions and determines which options will be available when the decision arrives. Berkshire Hathaway never found itself forced by circumstances into a series of bad decisions. Buffett and Munger wanted to remain in control no matter what happened in the world. People do not need to be smarter than others to outperform them if they can outposition them.

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• How Did Buffett's Punch Card Lead to Better Picks?

  Investors should find the exceptional few businesses and then concentrate behind them. Buffett's 20-card punch idea illustrates the point well. With only 20 investment opportunities in life, one waits longer, studies harder, and acts only when an opportunity is worth using one of the 20 chances.

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• Why Does the Wooden System Work Like Gangbusters?

  Concentrating almost 100% of the playing time on his top seven players allowed them to get better and better during all the extra playing time. John Wooden had the best basketball coaching record in the world and nobody else was even close. Applying the Wooden system by giving power to a Wooden or Buffett works like gangbusters. Investors can find a mini Wooden or a mini Singleton or a mini Buffett and benefit when they have a hell of a run.

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