I would call it a portrait of a remarkable mind. As Munger sees it, we could do worse than to emulate Albert Einstein, who once said his successful theories came from "curiosity, concentration, perseverance, and self-criticism. We need to avoid addiction, avoid envy and resentment, avoid toxic and dishonest people, avoid making disastrous mistakes. Recognizing wisdom is important, too. Munger points out that anyone capable of reading critically can drill into the content of their library for usable ideas.
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October 23, We would just roll eyes at one another that grown men could be doing this. Charlie: "Financial outcomes in securities markets are not plottable. Quite the contrary, the tails are way fatter. Warren and I always knew this by doing what might be called Monte Carlo simulation in our heads, just roughly. Of course, we never bothered to learn the math. We used to sit at Salomon when they made these presentations in the risk management crowd with all these figures, all the daily trading and the disaster, blah blah blah and so forth.
We would just roll eyes at one another that grown men could be doing this. And yet we were only two when the whole culture was into this craziness. We all get that way with our best-loved ideas, and it happens to people who get ideas about risk management. So there was just a lot of serious irrationality". The late polymath Peter Bernstein poured a long lifetime of erudition and insight into this intellectual history of risk, luck, probability and the problems of trying to forecast what the future holds.
Combining a stupendous depth of research with some of the most elegant prose ever written about finance, Bernstein chronicles the halting human march toward a better understanding of risk—and reminds us that, after centuries of progress, we still have a long way to go.
Poor Charlie's Almanack: The Wit and Wisdom of Charles T. Munger
Poor Charlie’s Almanack PDF by Charlie Munger