Wednesday, October 5, 2016

The Buffett Formula — How To Get Smarter

Taken from: Farnam Street Blog

“The best thing a human being can do is to help another human being know more.” — Charlie Munger
“Go to bed smarter than when you woke up.” — Charlie Munger

Most people go through life not really getting any smarter. Why? They simply won’t do the work required. It’s easy to come home, sit on the couch, watch TV and zone out until bed time rolls around. But that’s not really going to help you get smarter. Sure you can go into the office the next day and discuss the details of last night’s episode of Mad Men or Game of Thrones. And, yes, you know what happened on Survivor. But that’s not knowledge accumulation, it’s a mind-numbing sedative.

But you can acquire knowledge if you want it. In fact there is a simple formula, which if followed is almost certain to make you smarter over time. Simple but not easy. It involves a lot of hard work. We’ll call it the Buffett formula, named after Warren Buffett and his longtime business partner at Berkshire Hathaway, Charlie Munger. These two are an extraordinary combination of minds. They are also learning machines. We can learn a lot from them. They didn’t get smart because they are both billionaires. Read More...