In my opinion, One of Charlie Munger‘s most powerful mental models is the idea of inversion. The investor borrowed this principle from German mathematician Carl Gustav Jacob Jacobi. Put simply, Jacobi believed that one of the easiest ways to find an answer to any question is to flip it on his head. Instead of asking why something is happening, we should ask why something isn’t happening. “[Jacobi] knew that it is in the nature of things that many hard problems are best solved when they are addressed backward,” Munger has said. Q1 2022 hedge fund letters, conferences and more Inverting…
Charlie Munger’s Most Important Mental Model
Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for ValueWalk