Charlie Munger: Mental Models for the Rest of Your Life (PART 2)

Charlie Munger, the vice chairman of Berkshire Hathaway and one of the most successful investors ever, is said to have the best 30-second mind in the world. He goes from A to Z in one move. He sees the essence of everything before you can even finish the sentence.

How does he do it? Through observing reality and running it against his mental models. In this series of videos, you’ll learn some of the most important models which Charlie Munger uses, which he has talked about publicly. These mental models have helped Munger to conquer the stock market, but they are so diverse that they have applications within many other areas too. For example, they have allowed Munger to be a successful Chairman at a large hospital, and they have allowed him to overcome devastating personal losses.

The series will cover a total of 35 of Charlie’s mental models. He says he has some 100 models in his head at all times, but he also says that a few of them carry most of the freight. I think that we’ll cover the most important ones in this series, which will be divided into 7 parts, will 5 models in each one. The models will primarily be related to investing, but also to associated subjects such as economics, entrepreneurship & career. Hope you enjoy.

The mental models covered in this episode are:
00:00 Intro
00:39 Opportunity Costs
04:40 Parimutuel Betting
07:24 Survival of the Fittest
11:25 Margin of Safety
14:01 The Superpower of Incentives

- The Swiss Army Knife Approach
- Make Friends With the Eminent Dead
- Invert, Always Invert
- Compounding
- Crush Your Cherished Beliefs

My goal with this channel is to help you make more money and improve your personal finances. How to become a millionaire? There are many ways to get there – investing in the stock market, becoming a stock trader, doing real estate investing, or why not becoming an entrepreneur? But whether you are interested in how to invest in stocks or investing strategies for creating passive income with rental properties – I hope to be able to provide you with a solution (or at least an idea) here. Warren Buffett - the greatest investor of our time - says that you should fill your mind with competing ideas and then see what makes sense to you. This channel is about filling your mind with those ideas. And in the process – upgrading your money-making toolbox.

[bikeup]

I learnt the concept of Opportunity cost during my MBA (2007), life has never been the same since. I use this model more than any other.

[prakhargupta]

It is incredible to see how much time and effort you put in making of these videos. Great work 👍

[admir_]

Tack för ditt kolossala arbete att lyfta upp viktiga investernigsfrågor och sprida kunskaper. Helt enastående kanal.

[christopherwilcox]

I’m hitting the like button on every one of these! Awesome series!

[citysquirrel]

Your content is always 100% quality! Thank you!

[rohanpimpale]

You're the only one now a days who's explaining this topic beautifully love from India bro❤️

Opportunity cost might be the single most important concept investors need to understand. Truly understanding it and applying it whenever you (want to) make an investment decisions is a game-changer.

[DMccloudy]

Really enjoyed this! Looking forward to future parts :)

[angelsancheese]

thank you for the video looking forward to part 3

[romanholik]

That Lehman Brothers joke had me dead. Great video as usual for this channel!

[leverage]

It arrived ! i've been waiting for days ! 😀

[nothanks]

One of the best videos of yours. Thanks!

[MrGlobalxD]

I need this all models organized in pdf. It's amazing

[DownloadSuprSoul]

Thanks for this! Waiting for even more of these!

[iqbalmatondang]

Genius. Summarizing thousand hours of Charlie Munger thought by watching and editing his shareholder meeting is very difficult task that his biography cannot attain. You are a genius and attain a greatmetal clarifty. Thank you

[Krogzaxants]

Thank you very much, this channel is a blessing for investors that are serious about investing.

[nguyenmanhlinh]

I found your channels few weeks ago and Ive watched pretty much 2-3 videos everyday. I am new to investing and I suffered quite a big loss earlier this year. I realized my problem was my mindset that I was trading rather than investing. Have to say that watching your videos really did open my mind about value investing. Thanks a lot and please keep up the good work. Cheers from Vietnam!

[simranjitgill]

you're one of the most underrated YouTuber in the world!!! keep it up❤️

[Value_Pilgrim]

Very good initiative!
Hopefully the world will grow a bit wiser because of your efforts.

[jciymrk]

awesome series! not just good for investment but also perfect for daily life!