Become A Learning Machine
When successful people from different fields offer the same advice, I listen. Often they have different vocabulary around an idea, but when you break it down you realize they’re talking about …
Charlie Munger
How Raising Prices Can Increase Sales
I have posed at two different business schools the following problem. I say, “You have studied supply and demand curves. You have learned that when you raise the price, ordinarily the volume you can …
An Introduction to the Mental Model of Redundancy (with examples)
“The reliability that matters is not the simple reliability of one component of a system, but the final reliability of the total control system.” — Garrett Hardin *** We learn from …
Ethical Breakdowns: Why Good People often Let Bad Things Happen
When Charlie Munger recommended reading Max Bazerman’s Judgment in Managerial Decision Making I had never hear of the HBS professor. A lot of reading later and I’m a huge fan. In the HBR …
Hiring and the Mismatch Problem
“We want to cling to these incredibly outdated and simplistic measures of ability.” — Malcolm Gladwell *** Hiring is difficult and we tend to fall back on antiquated tools that give us a …
Basically, It’s Over: A Parable About How One Nation Came To Financial Ruin
An excellent parable by Charlie Munger on how one nation came to financial ruin. In the early 1700s, Europeans discovered in the Pacific Ocean a large, unpopulated island with a temperate climate, …
Charlie Munger Explains Why Bureaucracy is not Shareholder Friendly
Charlie Munger, the billionaire partner of Warren Buffett at Berkshire Hathaway, explains why bureaucracy is not shareholder friendly: The great defect of scale, of course, which makes the game …