Some Thoughts On Various Subjects From Charles Munger

“I like people admitting they were complete stupid horses’ asses. I know I’ll perform better if I rub my nose in my mistakes. This is a wonderful trick to learn.”

Charles Munger

“Simplicity has a way of improving performance through enabling us to better understand what we are doing.”

Charles Munger

“An idea or fact is not worth more merely because it’s easily available to you.”

Charles Munger

“You ought to have an internal compass. So there should be all kinds of things you won’t do even though they’re perfectly legal. That’s the way we try to operate.”

Charles Munger

“I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.”

Charles Munger

Some Thoughts On Mental Models From Various Authors

“Mental models are deeply held internal images of how the world works, images that limit us to familiar ways of thinking and acting. Very often, we are not consciously aware of our mental models or the effects they have on our behavior”

Peter Senge

“You have to learn all the big ideas in the key disciplines in a way that they’re in a mental latticework in your head and you automatically use them for the rest of your life. If you do that, I solemnly promise you that one day you’ll be walking down the street and you’ll look to your right and left and you’ll think “my heavenly days, I’m now one of the few competent people in my whole age cohort.” If you don’t do it, many of the brightest of you will live in the middle ranks or in the shallows.”

Charlie Munger

“The problem is not that we have mental models, it is that we don’t recognize that we have mental models.”

Srikumar Rao

“We all have mental models: the lens through which we see the world that drive our responses to everything we experience. Being aware of your mental models is key to being objective.”

Elizabeth Thornton

“One can train a man so that he has at his disposal a list or repertoire of the possible actions that could be taken under the circumstances…A person who is new at the game does not have immediately at his disposal a set of possible actions to consider, but has to construct them on the spot – a time-consuming and difficult mental task.

The decision maker of experience has at his disposal a checklist of things to watch out for before finally accepting a decision. A large part of the difference between the experienced decision maker and the novice in these situations is not any particular intangible like “judgment” or “intuition.” If one could open the lid, so to speak, and see what was in the head of the experienced decision-maker, one would find that he had at his disposal repertoires of possible actions; that he had checklists of things to think about before he acted; and that he had mechanisms in his mind to evoke these, and bring these to his conscious attention when the situations for decisions arose.

Most of what we do is to get people ready to act in situations of encounter consists of drilling in these lists into them sufficiently deeply so that they will be evoked quickly at the time of the decision.”

Herbert Simon

Books Of Interest: December 23, 2015

The Secret Lives Of Teachers     Anonymous

By the author being anonymous, He is able to really express his opinions, worries and other things that come into his head about teaching and the difficult job that it is . This is not a how-to-manual but shows us teachers as human beings and the struggles that they must endure.

Phishing For Phools     George A. Akerlof and Robert J. Shiller

The authors, delving into the manipulation and deception shows us how markets can be not just helpful but also harmful.

Thrive: How Better Mental Health Care Transforms Lives and Saves Money     Richard Layard and Daniel M. Clark

I did not know that twenty percent of people in the developed world suffer from some sort of mental illness and that half of sick days taken are due to this also. The authors explores how we need to take a hard look at mental illness and how as a nation we are dealing with it with our policies and the solutions that we need to implement.

Charlie Munger: The Complete Investor     Tren Griffin

Charles Munger takes a very rational approach to life and how he invests along with Warren Buffett. This book looks to be a treasure from the standpoint of giving the reader something to contemplate not just in their investing but in their everyday decision making and the struggles and problems

Some Thoughts From Charles Munger About Various Things

“People are trying to be smart – all I am trying to do is not to be idiotic, but it’s harder than most people think.”

“Just the discipline of having to put your thoughts in order with somebody else is a very useful thing.”

“What you have to learn is to fold early when the odds are against you or if you have a big edge, back it heavily because you don’t get a big edge often. Opportunity comes, but it doesn’t come often, so seize it when it does come.”

“I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.”

“You ought to have an internal compass. So there should be all kinds of things you won’t do even though they’re perfectly legal. That’s the way we try to operate.”

Article Of Interest: March 1, 2014

Atlantic-March-2014-225x300.jpg (225×300)

I was reading The Atlantic last evening and read this article by Chris Koentges on a goal keeping coach from Finland named Urpo Ylonen and found it fascinating. I have never played soccer and for that matter been interested in soccer but because of my tennis coaching past I delved into the article. Here is the link:

The Puck Stops Here

One of the most interesting parts of the article was how he used cross-training in badminton and eventually wrestling to work on various footwork and other skills in training these young men to be goalies. It made me wonder how effective my cross-training is in developing my mental models in my life. Are there true coaches in mental models that we can learn from in helping us develop our decision-making skills? I know Charles Munger has written extensively about this but are there others that I am not aware?

 

 

Books Of Interest Page October 7, 2013

Books

Books (Photo credit: henry…)

We are adding several more books to our Books of Interest Page and I encourage our readers to check it out!!! It is a list of book in various categories that I feel is a liberal arts approach to building mental models. Please feel free to comment as I add books to this list. I am adding brief reviews slowly and plan on doing more extensive reviews on www.consilientinterestreview.com in the future.

Quote About Predictions From Charles Munger

Annual Meeting

Annual Meeting (Photo credit: Ethan Bloch)

“The game of investing is one of making better predictions about the future than other people. How are you going to do that? One way is to limit your tries to areas of competence. If you try to predict the future of everything, you attempt too much. You’re going to fail through lack of specialization.”

Charles Munger