1. Charlie Munger: The Complete Investor

By Tren Griffin

2. Summary

- Charlie Munger is the legendary investor and financial partner of Warren Buffett. He is the vice-president of Berkshire Hathaway, and has done quite well investing.

  • The four simple ideas that help keep an eye on long term opportunities.

    •  First, treat owning a share as ownership in a business. Value the companies you invest in.

    • Second, buy discount to give yourself a margin of safety. The difference between the current market price and its intrinsic value... future cash flow. Buy at bargain prices.

    • Third, stay on the right side of the market. The bargain prices happen when you can spot mispriced assets and recognize emotions of "Mr. Market.

    • Fourth, remain unemotional when selecting investment opportunities. Don't invest because of your mood.

    • Stay Cool and rational. 

3. "Mr. Market"

- The belief that the market is as emotional as humans are, so know when the market is emotionally sad or happy can be a turn for your success. 

  • Take advantage of bargain prices so that you can create a margin of safety.

4. Investing with a System

- Simple investing techniques is how Berkshire Hathaway has been so successful. They focus on simplicity and builds off what you already know.

  • THE GRAHAM VALUE INVESTING SYSTEM, Benjamin Graham.

    • Invest only in things that you understand. ​

    • Three Baskets

      • In​ Baskets

        • Holding worthwhile potential investments & is small​

      • Out Baskets

        • Uninteresting opportunities ​

      • Too Tough Baskets

        • Holds Opportunities that look great but are currently outside competence.​

    • PATIENCE

    • Great investing requires realistic approaches and don't need to hit a homerun every time. 

5. Follow Wisdom, Courage, and Cultivate Patience

- Mental Models across a range of disciplines. Psychology, history, math, physics, philosophy, and biology all have wisdom that stems from each discipline's unique way of seeing the world

  • Examining behavior and spot similarities. 

  • How do they structure knowledge.

  • Don't abandon the assets ties to the product, understand why it happened.

    • Keep an independent mind and know when to split from the pack.​

    • Take risks with courage because you are Brave.

    • Be patient to prevent paying higher taxes, fees, and expenses by moving around your investments to much. Sit and wait.