cendant's Full Review: Janet Lowe - Damn Right!: Behind the Scenes With B...
While on vacation at the Jersey Shore last week, I stopped by the local used bookstore to see if I could pick up something to read while sitting at the beach, by the pool, in the hotel room, or wherever my lazy butt found a place to rest.
I'm an amateur investor and personal finance buff, so I figured I would check out the business book section for something that would be somewhat entertaining to read, but at the same time offer up some useful information or inspiration.
I came across this book about Charlie Munger, who is a longtime associate of billionaire investor Warren Buffett, the CEO of Berkshire Hathaway (BRK.A and BRK.B are the ticker symbols if you want to see how Berkshire's stock has performed over the years). Munger is Buffett's number 2 man at Berkshire, and Buffett often jokes that during good years Munger is his Junior Partner while in bad years, he's the Senior Partner.
I'd read most, if not all, of the books about Buffett, and found them to be fantastic on the whole. I will save the specifics on these books for other reviews, if I ever get around to writing them. Most of these books mention Munger, and how he had an influence on Buffett's investing style, so I figured id get a bit of wisdom out of buying this book over a "Get Rich By Selling Banana Peels" type book. I paid $10 for a used hardcover version and was not disappointed.
The book is very well done, and the author repeats that she had a few sit down interviews with Munger, as well as stays at Munger's place during the course of the writing. you're not getting a rehash of press articles written about Munger. In fact, the book contains many personal anecdotes and id say about 50% of it is devoted to a discussion of "Munger the man" rather than "Munger the Investor."
Munger the man, the book revealed, is an intellectual at heart. He cares about learning, and is passionate about school cirricula. He is a proponent of the liberal arts (well rounded) education, and in particular he passionately believes that psychology is under-appreciated and under-emphasized in most major universities. His other big cause (and Buffett's) is giving women the right to have abortions.
The book didn't reveal as much as I'd hoped about Munger the investor, but it walked through how he got involved with Warren Buffett (through a mutual acquaintance in Omaha), how he made his first million (he worked as a lawyer and did some real estate development deals), and then told the story of Berkshire Hathaway from the Munger point of view (vs. the Buffett point of view which can be found in Lowenstein's Excellent book "Buffett - the Making of an American Capitalist").
Overall it was an interesting read, showing how Charlie Munger built his fortune which is predominantly made up of his ownership position in Berkshire Hathaway, the company he helped build.
What I got out of it that I can pass along to you is, first of all, his general maxim of investing, which many have repeated, but few truly appreciate: "Always live below your financial means so that you will have money to invest." This makes so much sense to me.
Second: "Invest in such a way so as to avoid the possibility of falling into a negative position -- primarily, by avoiding the use of debt."
Third: "To those whom much is given, much is expected." Meaning, if you're rich, you should act as a prudent steward of the portion of society's wealth that has been given to you. Munger and Buffett are big into philanthropy.
After I read this book, I went out and read a primer on psychology because of Munger's convincing argument in favor of learning about this underappreciated science.
This book was a good way to learn, and served as a gateway to even more learning. That's what I hope to get out of a good nonfiction book, and thats why I'm recommending "Damn Right" to anyone interested in finance and investing.
Janet Lowe s unprecedented access to Charlie Munger and Warren Buffett has resulted in a first-class book that investors, academics, and CEOs will fin...More at Buy.com
The curmudgeon Charles Munger has been called the brains behind Warren Buffett . He s the straight man behind Warren Buffett s jokes, the confidant at...More at Buy.com
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