Charlie Munger Recommended Reading List
Charlie T Munger, famous value investor, Buffet right hand man with so much wisdom about the world and investing we can hardly compare him to anyone else. There is no doubt that this man knows what is worth reading and what not since he has spent most of his life reading, and if you know how old he is, then you know it is very many years. In Charlie Munger recommended reading list, we will go through the most important books worth reading, and they were recommended by Mr. Munger himself. Some of the links are affiliates, and I may earn a small commission when you make a purchase through them at no additional cost to you.
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time—none. Zero. You’d be amazed at how much Warren reads—and how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”
Charlie Munger
On Success by Charlie Munger
The first on the list is book by Charlie Munger himself – On Success. The book is short but packed with amazing insights about the errors in judgment we make and why we make those errors. By reading this book will get clarity on decision making processes, but also the book will teach you how to be a successful investor and how to live a prosperous life. However, keep in mind that the material in this book is entirely contained in Poor Charlie’s Almanack, which is much cheaper choice and is next on the list.
Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger
Another book by Charlie T. Munger which is if you ask me better choice than the first one. You will get everything from the first book for less money.
In this book, Munger talks about wisdom in life & investments. He goes through a list of common thinking tendencies and how they can impact decision making. This book is great for those who want to get information on what it takes to be successful and to achieve greatness in what it is you want to do in life. The book also has many quotes from successful people like philosophers and entrepreneurs. However, book has 500+ pages and be sure to book your time if you decide to buy it.
Influence: The Psychology of Persuasion by Dr. Caldini
Munger often recommends how much he has learned from this book. The book is simple to read and it will make clear many things that you encounter in everyday life. When I was reading it, I had many “aha” moments, so I guess it will be similar to you. Cialdini details six principles of persuasion, (along with reciprocity, consistency, authority, liking, and scarcity as well as social proof, which is essentially groupthink.
You will encounter many examples that author uses to explain influence power. I recommend this book to all people, it will improve your understanding how life works and after reading it you will think next time when you are offered something for free.
The Selfish Gene by Richard Dawkins
Charlie Munger often refers to evolution and has an evolutionary view of the world which helps him to understand people better and make quality decisions. Another book that will give you broader view on how the world is functioning is the exciting book Selfish Gene.
The Selfish Gene has become a classic exposition of evolutionary thought. Professor Dawkins articulates a gene’s eye view of evolution – a view giving centre stage to these persistent units of information, and in which organisms can be seen as vehicles for their replication. If you’re interested in biology or genetics, I’d recommend it, and if not, I think this book could spark that interest.
Guns, Germs and Steel: The Fate of Human Societies by Jared Diamond
Here is an author with an inquisitive mind. He searches, not how human races are different, but how they got there. What are the mechanisms that drove their various civilizations in such different trajectories? There exist only a limited number of plants and mammals that lend themselves to domestication and their availability determines the chances of hunter-gatherers to turn into a settled society and to progress in further advancement.
his book is a wellspring of information about where we come from and the author distributes it out of a basket of abundant knowledge.
Models of My Life by by Herbert A. Simon
Another book on human psychology. The books talks about the secret of interdisciplinary success that is, in author’s own word, a “monomaniac”, studying only one thing–human decision process–for fifty years. People who follow Herber always wonder how can he be so successful in different fields.
By reading this book, you are able to get the light of the stories behind his success.
Deep Simplicity by John Gribbin
It is a very informative book, writing about fascinating topics of physics, biology, life and Universe. It will explain you underlying concepts and the history of the complexity and chaos in a clear, precise, structured way. Sounds weird, however, if you read it then some things will become clear.
I would recommend this book to anyone who wants to understand how nature works at a fundamental level and why things that seem complex are really simple at the most basic level.
Fiasco: The Inside Story of a Wall Street Trader by Frank Partnoy
Fiasco is the shocking story of one man’s education in the jungles of Wall Street. Book is great for those who want to learn about these financial weapons as it is written in an easy-to-follow way that even those who don’t deal with derivatives day in and day out will be able to clearly understand what was going down. However, the book is old and can therefore there is no recent research in it.
The Warren Buffett Portfolio: Mastering the Power of the Focus Investment Strategy by Robert Hagstrom
As the title says, the book is about Buffett’s investment philosophy, with special focus on his portfolio management style, which Hagstrom calls Focus Investing (in quotes below).
I wouldn’t recommend this book above many others on Buffett (starting with The Collected Essays of Warren Buffett), but if you’ve read those and just can’t get enough of Buffett, this book is an enjoyable read.
“Choose a few stocks that are likely to produce above-average returns over the long haul, concentrate the bulk of your investments in those stocks, and have the fortitude to hold steady during any short-term market gyrations.”
Robert Hagstrom on Buffet’s strategy
Summary
They say that a man is what he reads, and if we followed Charlie Munger and compare his thoughts with the recommended reading list by Charlie Munger, we will know that it is so for sure.
It is interesting that Munger studies life and the world a lot, and based on that he makes important investment decisions.
Which actually indicates how much books we need to devour to be a good investor and human being like Charlie Munger. We should have a general notion of life, and thus some human actions, psychology, behavior.