Big Winner

I’ve talked about Warren Buffett’s business partner and his advice in a couple of previous posts. The posts were Billionaire Charlie Munger and the Art of Stockpicking and Invest Like Berkshire Hathaway billionaire Charlie Munger. Via the Y Combinator venture firm’s web site, I found another one of his excellent speeches. The speech is entitled “A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business” and was given in 1994 at USC.

Munger’s speech focuses on mental models and creating a mental framework for investing. If investors don’t have a consistent framework that adjusts for their cognitive biases, it is much more difficult to be successful. This is also a theme in recent books like Ken Fisher’s “The Only Three Questions that Count” and Jason Zweig’s “Your Money and Your Brain” which take behavioral finance and the psychology of investing into account.

Source:
http://www.ycombinator.com/munger.html