Saturday, July 29, 2006

Books recommended by Charlie Munger

Investment Master Mind and Warren Buffett side kick Charles T. Munger's recommended reading list.
First list is from Amazon and I guess taken from his book.

This other list is compiled from annual meetings. Don't know how much they overlap, but the second list has lots of additional comments.

Actually it seems both lists are from the same person. Anyway...

Here is a quote from Munger:

>>"The number one idea," he said, "is to view a stock as an ownership of the business [and] to judge the staying quality of the business in terms of its competitive advantage. Look for more value in terms of discounted future cash flow than you're paying for. Move only when you have an advantage. It's very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor."
Munger quit practicing law in 1965 after 17 years, because "sometimes you're on the wrong side. Often you're dealing with unreasonable people where you can't fix things fast. It's inefficient. I like the discipline of backing my own judgments with my own money. It suits my temperament better. Of course, I also realized that the upper potentialities were better outside of law."<<

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