The Munger Way

TL;DR Einstein is quoted that compounding is the 8th wonder of the world. As every investor knows, interest on money compounds wealth. As every Buffett-Munger-follower knows, reading compounds wisdom. Start compounding wisdom by reading and thinking, wealth will likely follow. Compounding effect of Buffetts net worth. Compounding is the corner stone of Buffetts success. He read the whole library of his father at the age of 10 and gone head on to read the library of congress when is father got elected offical. At that time he started to read company and industry reports and never stopped till then. His knowledge about companies started to compound more and more. His wealth is dwarfed by his wisdom. Warren Buffett reads a lot! Yet there is a missunderstanding in the follower ship. Its generally accepted that WB reads a 500 pages a day - for sure he can - but he does not. He reads 500 pages a week [ Valuewalk ]. Thats about 75 pages per day. Thats absolutely doable. Ted C...

I write this article before I will leave La Guardia Airport in New York to Omaha to visit Warren Buffetts Berkshire Hathaways annual general meeting. I cannot wait to see Charlie Munger and Warren Buffett in real life. One of the traits I admire the most in Berkshires success is to drill down a complex company valuation into a set of simple and crystal clear facts and relations. Charlie Munger recommends to learn mental models. Mental models help to dissect complex problems into essential factors. When multiple factor work into the same direction, enforcing each other, a lollapaloosa happens, and driving an outcome. Three books come to my mind when thinking about mental models the following books come to my mind. Poor Charlies Almanack Seeking Wisdom Super Thinking Weinbergs Mental Models One of my favorite source are the mental models of Gabriel Weinberg. Before he wrote his super thinking book (mentioned above), he wrote this blog article on medium . It is one o...

Stay away from industries where everybody seems to be a winner . https://brucepackard.com/everyones-a-winner/ Bruce Packard writes about analyzing text complexity of company filings. Bruce Packard applies natural language processing to investing. https://brucepackard.com/signals-in-obfuscation/ Analyst says Nvidia lied about its cryptocurrency earnings to avoid stock crash https://www.techspot.com/news/78548-analyst-nvidia-lied-about-cryptocurrency-earnings-avoid-stock.html Nvidia Appears To Have A GPU Inventory Problem https://seekingalpha.com/article/4182662-nvidia-appears-gpu-inventory-problem Financial engineers found a way around Dodd-Frank Act. Issueing and re-selling of leveraged loans for corporate debt. https://www.latimes.com/business/la-fi-corporate-debt-risks-20190120-story.html#nws=mcnewsletter