Poor Charlie’s Almanack Flashcards
(33 cards)
If you want to be wise, what should you ask all the time?
Why, why, why?
Always ask why. It’s the fastest way to wisdom and knowledge.
How should you tell someone to do something?
Tell them why you are asking them / telling them to do something.
They will understand your request better and be more likely to comply
What’s the best way to create X?
Or, what’s the best way to solve hard problems?
Invert, always invert
Create X by first working out how to create non-X
Many hard problems are solved backwards
How should you make difficult decisions?
Always use a decision tree
Decision A
> areas of short term / long term impact
> consequences of decision in each area
> consequences of the consequences
How do businesses thrive in economies?
When they specialise and have a niche, and can do this at scale
How will you get an advantage over others?
By operating in your circle of competence where you have an edge over others.
Where are you disproportionately better than others?
How should you ensure you make the most of opportunities in life?
First work out all the things you shouldn’t do (that will harm you) and avoid these.
Then calculate the things that you think will majorly benefit you, using rational analysis, and note them down.
When these opportunities come around, go very big on them.
Good story about incentives?
FedEx. Couldn’t get all planes in one place transferring packages to each other at night
Changed pay from hourly to shift-based (when you’ve delivered your packages, you go home)
Problems cleared up overnight.
What are the 3 things that help with life’s challenges? (And one thing above all)
- Have low expectations
- Have a sense of humour
- Surround yourself with the love of friends and family
Above all, live with change and adapt to it.
What does the captain cook story tell you about psychology?
His sailors all had scurvy. Dutch ships didn’t have it. Only difference was sauerkraut (vitamin C)
English sailors didn’t want sauerkraut.
Captain cook started serving sauerkraut on the main table first for leaders only.
Then said sailors can have it once a week.
Soon, all sailors ate sauerkraut.
Scarcity + glamour = demand
What should you do when you see someone who is a high-performing A player?
Connect with them. Befriend them. Spend time with them. Partner with them.
Always connect with high performers. The people you surround yourself with impacts who you are.
How can you reduce problems in your life?
Go for great.
Great people are rare. Great businesses are rare.
But if you work hard to be around great people and work for great businesses, you will have fewer problems in life.
What’s the key to making a success of something that is working?
Stay sane and let time do its thing. If you are moving upwards, keep working and allow time to compound the growth.
The hardest challenge is not messing it up. This is what human nature will lead you to do.
What does Charlie say about the crowd and mean?
Following the crowd necessitates regression to the mean.
If you want to be exceptional, you must not follow the crowd.
Think and act from first principles alone.
How should you act when things go bad?
Calm. It’s in human nature for things to boom and bust.
Things will always boom. Things will always bust.
For stocks, always hold cash ready to invest when the market crashes. Because it will and you’ll need to be ready when it does.
What’s the problem with multi tasking?
You hinder any ability you may have to focus and get anything done.
You don’t need brains, you need a long attention span and to focus on one thing at a time.
Never ever multi task
What’s Charlie’s quote on richness and sanity?
The problem isn’t getting rich. It’s staying sane. Do not be an idiot. This is the only thing you need to do overtime.
Have patience, do not do anything drastic that moves you away from your first principles
When is the only time you should make a move?
When the odds are in your favour or when you have an advantage
Quote about wise people and troubles?
Wise people step on big and growing troubles early
What’s the principle on telling the truth?
Always do it. Honesty and genuineness is very important.
How does Charlie view democracy?
In democracy, everyone takes turns. If you give power to one person with wisdom and knowledge, then things will actually happen and you will achieve a lot more.
Eg, Apple or Singapore
3 part formula for career success
- Don’t sell anything you wouldn’t buy/use yourself
- Don’t work for anyone you don’t respect/admire
- Work only with people you respect and enjoy spending time with
How should you view mistakes?
Embrace them. Where would you be without mistakes? Nowhere.
The strong person is always positive and moves forward, learning from mistakes constantly.
ALSO - be public about your mistakes and own them. It shows strength of character.
Why is specialisation so important?
Specialisation and being in your niche is where you become useful and can separate yourself from the crowd.
If you have no speciality, you are expendable and will never get big projects or big payouts.
The more niche and specialised you are, the more successful you have the opportunity to be.
