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A Book Review: Poor Charlie's Almanack

|Includes:Berkshire Hathaway Inc (BRK.A)

Sometimes you stumble upon something mindblowingly great. This goliath of a book falls in to that category. The book is literally big as a bible, but it's nowhere near as boring. Quite the contrary, the book is printed on thick quality paper and illustrated with pictures on almost every page. The book is about Charlie Munger, the 87-year old vice chairman of Berkshire Hathaway, and his thoughts on subjects ranging from Ben Franklin's life lessons to psychology of human misjudgement. Mainly the book is of course business and investing related, but as Bill Gates is quoted as saying in the back of the book, "Charlie is truly the broadest thinker I have ever encountered." After reading the book I would agree.

What I found the most interesting about the book was chapter 11, where Charlie lists 25 psychological tendencies that tend to skew our everyday thinking. Learning them by heart as a checklist (Charlie loves checklists and advocates using them as often as possible), I think anyone could become a more rational person, be it in business, marriage or any other human interaction. The list includes such standard thinking errors as loving/liking tendency, incentive superreaction tendency and contrast-misreaction tendency. The tendencies, their evolutionary basis, their effects on our lives and the antidotes against them are explained in a clear and understandable way that is uncommon in psychology literature.

If you're interested in the subjects of business, Ben Franklin and the kind of wisdom he practiced and preached, be sure to check out this book. It is unfortunately only available for order in the internet and it is shipped from the United States. It can be ordered from the page I linked to in the first chapter.

Stocks: BRK.A