📖Charlie Munger
Simplicity in Stock Picking
Skip complexity and focus on obvious opportunities.
If it's too hard, pass on to something else. I don't have to make money in every game. I just have to find a few good opportunities and be right about them.
🏠 Everyday Analogy
📖 Core Interpretation
Charlie Munger advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：The best investments are often the simplest ones to understand.
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❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Pre-Crisis Mortgage Mania (2007)
Munger criticized subprime lending, complex derivatives, and excessive leverage, steering clear of such financial stocks.
✨ Outcome：Avoiding opaque financial products spared Berkshire from major write-downs during the 2008 crisis, enabling it to deploy capital into distressed but solid businesses.
2
See's Candies Acquisition (1972)
Munger pushed Buffett to buy See's Candies above book value, emphasizing its strong brand, pricing power, and loyal customer base as an enduring competitive moat.
✨ Outcome：Berkshire paid $25M; See’s generated over $2B in pre-tax earnings over decades with minimal additional capital.
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