Poor Charlie's Almanack

Two of the ideas you’ll keep

The Clif summary of Poor Charlie's Almanack pulls out 7 insights. Here are the first two.

1. Real thinking requires a **latticework of mental models**, roughly eighty to ninety big ideas borrowed from physics, biology, psychology, economics, and math, hung together in your head. Munger's warning is the **man-with-a-hammer syndrome**: to someone holding only one tool, every problem looks like a nail.
2. Operate only inside your **circle of competence** and know exactly where its edge lies. Munger insists he is no genius but is 'smart in spots', the trick is to stay resolutely around those spots and let everything outside them go by.

The other 5 — and the full 12-minute summary — are in the app.

What’s inside: 9 chapters

The whole summary runs about 12 minutes, read or listened to.

1. The Ben Franklin of Our Age
2. Building a Latticework of Mental Models
3. Invert, Always Invert
4. The Psychology of Human Misjudgment
5. Incentives Rule the World
6. The Lollapalooza Effect
7. How to Turn $2 Million into $2 Trillion
8. The Art of Stock Picking
9. Worldly Wisdom as a Way of Life