Whether you know about mental models or not, this episode adds something completely unique to the conversation.
The multidisciplinary (aka multiple mental models) approach to thinking gave Charlie Munger an enduring competitive edge as an investor, and he credits it with enhancing all areas of his life.
We put Charlie’s first public discussion about his multiple mental models approach in context of Berkshire Hathaway’s history and the $1 billion dollar bet Berkshire made on Coca-Cola in the late 1980s. We also make a unique discovery i.e. how the using multiple mental models to assess investment opportunities continues to be Berkshire Hathaway’s edge, as illustrated by the $60 billion dollar bet Berkshire on Apple.
Howard Marks is the founder of Oaktree Capital and the author of an excellent book titled The Most Important Thing. In the very first chapter, Marks discusses the kind of thinking that is required to consistently outperform the market, something that only a small club of inves…
