“Warren Buffett calculates opportunity cost over decades, thinking about what $100,000 will become at 20% annual returns over 20 years rather than the immediate purchase price”
About Charlie Munger
Charles Thomas Munger (January 1, 1924 – November 28, 2023) was an American businessman, investor, attorney and philanthropist. He was the vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett, from 1978 until his death in 2023.
Relevant Clips7
- Teaching
Warren Buffett Calculates Opportunity Cost Over Decades
Warren Buffett calculates opportunity cost over decades, thinking about what $100,000 will become at 20% annual returns over 20 years rather than the immediate purchase price
- Teaching
Incentives as Hidden Drivers Behind Every Decision
Incentives are the hidden drivers behind all thoughts, decisions, and actions - understanding them gives insight into persuading ourselves and others
- Teaching▶ 5:41
Building 100 Mental Models Across Domains
You need approximately 100 diverse mental models from different domains that can be used in combinations to become highly generative and creative
- Teaching▶ 5:40
You Need 100 Mental Models From Diverse Domains Working in Combination
You need approximately 100 mental models from diverse domains that work in combinations to become generative and creative
- Teaching▶ 15:47
The Kiss Test — Naming Creates Perceived Value
The Kiss Test demonstrates how naming creates perceived value - men didn't know a test for readiness to kiss existed
- Teaching▶ 0:41
Preparation Required to Seize Rare Opportunities
Great opportunities are infrequent and require preparation to recognize and execute when they arrive
- Teaching▶ 7:58
Sharing Wealth Fairly While Avoiding Incentive Traps
Share wealth and proceeds fairly with your team while avoiding performance-based incentive traps