We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War,…
We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War,…
Warren Buffett《Berkshire Hathaway 2023 Letter to Shareholders》· 2023 Chairman's Letter · Investing
Nevertheless, Charlie, in 1965, promptly advised me: “Warren, forget about ever buying another company like Berkshire. But now that you control Berkshire, add to it wonderful businesses purchased at fair prices and give up buying fair businesses at wonderful prices. In other words, abandon everything you learned from your hero, Ben Graham. It works but only when practiced at small scale.” With much back-sliding I subsequently followed his instructions.
We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War,…
Charlie Munger《A Lesson on Elementary, Worldly Wisdom As It Relates To Investment Management & Business》· The models: multiple disciplines · Learning · Cognition · Philosophy
And the models have to come from multiple disciplines—because all the wisdom of the world is not to be found in one little academic department.
Worldly wisdom requires models drawn from many disciplines, not one department.
Context
Munger insisted that models must come from multiple disciplines. Specialists in physics, economics, or psychology can mistake their favorite tool for a universal key, while real problems cut across fields. Borrowing models from several disciplines reveals variables that a single lens misses.
Today's question
Which discipline shapes your judgment most—and what overlooked variable would another discipline reveal?
We will continue to ignore political and economic forecasts, which are an expensive distraction for many investors and businessmen. Thirty years ago, no one could have foreseen the huge expansion of the Vietnam War,…