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This is an absolutely brilliant book and I wholly recommend it. Below, I have selected - what seems to me -the most important remarks in each chapter.Chapter 1: A Portrait of Charles T. Munger

1. "

And fear of death is silly and unacceptable for thisRoman. He reasons that either (a) you are going to aperpetual, better afterlife, or (b) you wont retain any pain if there is no such outcome" (c. Cicero's

Discourse of Old-Age)

2. "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 at how much I read. My children laugh at me. They think I' a book with a couple of legs sticking out."Chapter 2: The Munger Approach to Life, Learning, andDecision Making1. "Our experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to actpromptly in scale, in doing some simple and logical things, will often dramatically improve the financial results of thatlifetime. A few major opportunities, clearly recognizable assuch, will usually come to one who continuously searchesand waits, with a curious mind that loves diagnosis involvingmultiple variables. And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence inthe past."3. "When my friend Buffett and I left our respective graduateschools, we found huge predictable patterns of obvious

extreme irrationality in the business world. This irrationality was grossly important in what we were trying to do, yet ithad never been mentioned by our professors. Our solution,one we learned at a very early age in the nursery: 'Then I'll doit myself,' said the Little Red Hen. So if your professors won'tgive you an appropriate multidisciplinary approach, if each wants to overuse his own models and underuse theimportant models in other disciplines, you can correct thatfolly yourself."4. "The book that rests on my library coffee table is not PeterLynch's

Beating the Street

or even my own, but several books by historian Paul Johnson on the makings of thenineteenth and twentieth centuries. There is no betterteacher than history in determining the future . . . there areanswers worth billions of dollars in a $30 history book." -Bill Gross (PIMCO)5. "Charlie counts preparation, patience, discipline, andobjectivity among his most fundamental guiding principles.He will not deviate from these principles, regardless of groupdynamics, emotional itches, or popular wisdom that "thistime around it's different."6. "Charlie calls it "sit on your ass investing" and cites it benefits: "You're paying less to brokers, you're listening toless nonsense, and if it works, the tax system gives you anextra one, two or three percentage points per annum. In his view, a portfolio of three companies is plenty diversification."7. "The number one idea is to view a stock as an ownership of the business and to judge the staying quality of the businessin terms of its competitive advantage. Look for more value interms of discounted future cash-flow than you are paying for.

Move only when you have an advantage. It's very basic. Youhave to understand the odds and have the discipline to betonly when the odds are in your favor. We just keep our headsdown and handle the headwinds and tailwinds as best wecan, and take the result after a period of years."8. "A great business at a fair price is superior to a fair business at a great price."Chapter 3: Mungerisms

Highlights from Recent Berkshire Hathaway and Wesco Financial Annual Meetings

1. “Beta and modern portfolio theory and the like - none of itmakes any sense to me. We're trying to buy businesses withsustainable competitive advantages at a law, or even a fair,price."2. “How can professors spread this [nonsense that a stock's volatility is a measure of risk]? I've been waiting for thiscraziness to end for decades. It's been dented, but it's still outthere.”3. “Warren once said to me, "I'm probably misjudgingacademia generally [in thinking so poorly of it] because thepeople that interact with me have bonkers theories."4. “Being short and seeing a promoter take the stock up is very irritating. It's not worth it to have that much irritationin your life.”5. “I think that, every time you see the word EBITDA, youshould substitute the words “bullshit earnings.”6. “A stock option is both an expense and dilution. To argue