Notes From Charlie Munger and Models You Should Know

• You can't really know anything if you just remember isolated facts and bang 'em back
• You've got to have models across a fair array of disciplines
  • Fermat/Pascal System
  • Decision Tree Theory
  • Elementary Psychology
  • The engineering idea of breakpoints
  • Notion of critical mass
  • Cost-Benefit Analysis 
  • Gaussian and Normal Distribution
  • Advantages of Scale
  • Pavlovian Association
  • Efficient Market Theory
  • Pari-Mutuel System 
  • Sector Rotation
  • Psychological Denial Mode
• The 5 W's: you have to tell who was going to do what, where, when and why
• The mind of man at one and the same time is both the glory and the shame of the universe
• The great lesson in microeconomics is to discriminate between when technology is going to help you and when it's going to kill you
• If you play games where other people have the aptitudes and you don't, you're going to lose
• You have to figure out where you've got an edge
• Getting incentives right is a very, very important lesson