#329 Charlie Munger (the NEW Poor Charlie’s Almanack) | Founders

Intro

A special conversation with Charlie Munger and John Carlson, co-founder of Stripe, has been released for the first time today. The conversation delves into ideas that relate to the new updated version of Poor Charlie’s Almanac, available for the first time today. Poor Charlie’s Almanac offers a refreshing rebuttal of conventional financial wisdom with unusual simplicity and candor. Charlie Munger’s intellectual breadth and multidisciplinary mode of reasoning are evident in the book. It is not just about investing, but also a guide to learning how to think for yourself and understand the world around you. The practical wisdom of Poor Charlie’s Almanac will compound as successive generations of entrepreneurial readers extend his lessons to their own circumstances.

Main Takeaways

Charlie Munger’s Wisdom and Success

• Charlie Munger’s success and that of Berkshire Hathaway is a testament to the concept of compounding growth.
• The practical wisdom of Poor Charlie’s Almanac will compound as successive generations of entrepreneurial readers extend his lessons to their own circumstances.
• Charlie Munger’s book “Poor Charlie’s Almanack” has been updated and republished by Stripe Press, after two years of collaboration with Charlie Munger.

Lessons on Choosing a Business Partner

• Seek a partner who will not flaunt superiority and will support your accomplishments.
• Look for a partner who won’t second-guess you or criticize expensive mistakes.
• Partner should be generous, willing to invest, and add fun to the journey.
• Warren Buffett followed this advice and found Charlie as his ideal partner.

The Value of Charlie Munger’s Book

• The book contains 80% of Charlie’s own words, making it a valuable resource.
• Introduction by Peter Kaufman provides an overview of important ideas in the book.
• The book reflects Charlie’s old-fashioned Midwestern values and teachings.
• Charlie is considered one of the greatest teachers in the world, having inspired millions of people interested in business, investing, and living a good life.

The Power of Storytelling and Learning from Others

• Charlie Munger’s use of memorable stories allows for the recall and application of his lessons when needed, creating a positive correlation between storytelling ability and business performance.
• The art of storytelling is mentioned as critically important for entrepreneurs, as money flows as a function of stories.
• Charlie places a premium on life decisions over investment decisions, valuing independence as the end that wealth serves, not the other way around.
• Education is the process of acquiring the ability to lead a good life, and it’s important to not sacrifice everything in service of one goal, but to build a great business in service of building a great life.

The Importance of Resilience and Support

• Charlie Munger’s admiration for his grandfather and the role he played in his family inspired not only Charlie’s personal conduct, but also the role he wanted to play for his kids and grandkids.
• Charlie faced personal hardships, including the death of his young son and a divorce, but he persevered and remarried, supporting his family while working as a lawyer.
• Seeking to earn more than a senior law partner, Charlie sold an hour of his own time back to himself to learn about investing in stocks and real estate projects.
• Charlie’s first property development project was successful, earning a profit of $300,000 on a $100,000 investment in 1961, and he left all his profits in real estate ventures, accumulating a nest egg of $1.4 million.

Summary

Charlie Munger’s Wisdom and Success

Charlie Munger’s success and that of Berkshire Hathaway is a testament to the concept of compounding growth. The practical wisdom of Poor Charlie’s Almanac will compound as successive generations of entrepreneurial readers extend his lessons to their own circumstances. Charlie Munger’s book “Poor Charlie’s Almanack” has been updated and republished by Stripe Press, after two years of collaboration with Charlie Munger.

Lessons on Choosing a Business Partner

Charlie Munger emphasizes the importance of choosing a business partner who will support your accomplishments, not flaunt superiority, second-guess you, or criticize expensive mistakes. Warren Buffett followed this advice and found Charlie as his ideal partner.

The Value of Charlie Munger’s Book

Poor Charlie’s Almanac contains 80% of Charlie’s own words, making it a valuable resource. The introduction by Peter Kaufman provides an overview of important ideas in the book. It reflects Charlie’s old-fashioned Midwestern values and teachings, and he is considered one of the greatest teachers in the world, having inspired millions of people interested in business, investing, and living a good life.

The Power of Storytelling and Learning from Others

Charlie Munger’s use of memorable stories allows for the recall and application of his lessons when needed, creating a positive correlation between storytelling ability and business performance. The art of storytelling is mentioned as critically important for entrepreneurs, as money flows as a function of stories. Charlie places a premium on life decisions over investment decisions, valuing independence as the end that wealth serves, not the other way around. Education is the process of acquiring the ability to lead a good life, and it’s important to not sacrifice everything in service of one goal, but to build a great business in service of building a great life.

The Importance of Resilience and Support

Charlie Munger’s admiration for his grandfather and the role he played in his family inspired not only Charlie’s personal conduct, but also the role he wanted to play for his kids and grandkids. Despite personal hardships, Charlie persevered and remarried, supporting his family while working as a lawyer. Seeking to earn more than a senior law partner, Charlie sold an hour of his own time back to himself to learn about investing in stocks and real estate projects. His first property development project was successful, earning a significant profit and accumulating a nest egg for future investments.

Conclusion

Charlie Munger’s book, “Poor Charlie’s Almanack,” offers practical wisdom and valuable insights for entrepreneurs and investors. It emphasizes the importance of choosing the right business partner, storytelling, learning from others, and resilience. The book is a valuable resource for those interested in business, investing, and personal development. By applying Charlie Munger’s teachings, readers can compound their own success and navigate the complex world of finance and decision-making.