Monday, March 1, 2010

Recognizing Reality Better

A BIG thanks to Manish for finding and passing this along. My friend Miguel who - as usual - is well ahead of me on posting great material, already put up all seven parts of this talk:

Charlie Munger is first mentioned in Part 2. Mr. Munger and Mr. Buffett are mentioned in Parts 5 and 7 (no offense to Mr. Van de Mark, but he really needs to work on his Charlie Munger impression). My favorite part of the talk was in Part 6 at the 3:20 mark when he mentions that wild animals are sensory dominated and so they always see everything in a fresh way, otherwise they won't survive long. The 'Tips' in Part 7 also provide some good checklist items.

One of the reasons I enjoyed this talk is that I think that in the information age, developing the multidisciplinary knowledge recommended by Charlie Munger might be a big key to creating a good long-term investment track record. When there is so much information available about just about every company, in every industry and in every size, the real advantage may come primarily from HOW that information gets interpreted, analyzed, and turned into a decision.