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May 13, 2008

Poor Charlies Almanack — one business book you need to read

by Andrew

I am a picky reader. I prefer to take topics one at a time and study them very closely. Recently I decided to start going through all of Warren Buffet’s Letters to Berkshire Shareholders.

The past few years Warren Buffet has made reference to his partner’s book (Charlie Munger), Poor Charlie’s Almanack: The Wit and Wisdom of Charlie Munger. The book went on my “to read” list. However, after seeing an excellent post on Marc Andreessen’s blog — The Psychology of Entrepreneurial Misjudgment, part 1: Biases 1-6, I immediately ordered two copies of the book.

Charlie Munger preaches the use of multiple mental models when approaching business and investing. I thought that I had a similar approach. That is, until I read Charlie has about 100 (I’ve been using maybe 4 or 5.)

The book gives a run down of Charlie’s life along with a collection of 10 talks he has given. There is a fair bit of repetition in the book’s 500 or so pages, but not so much in a bad way. Other than that, I have nothing bad to say. Do not expect a point-by-point list of what you should exactly do. This is a book about how to think so you can solve problems.

A blog review can’t do this justice. If you want a preview, check out Marc Andreessen’s post I linked to. Like it, you’ll like the book. You can grab a used copy off of Amazon, or get a new copy direct from the publisher.

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