Poor Charlie’s Almanack

Question 1

If you want to be wise, what should you ask all the time?

Answer 1

Why, why, why?

Always ask why. It’s the fastest way to wisdom and knowledge.

Question 2

How should you tell someone to do something?

Answer 2

Tell them why you are asking them / telling them to do something.

They will understand your request better and be more likely to comply

Question 3

What’s the best way to create X?

Or, what’s the best way to solve hard problems?

Answer 3

Invert, always invert

Create X by first working out how to create non-X

Many hard problems are solved backwards

Question 4

How should you make difficult decisions?

Answer 4

Always use a decision tree

Decision A
> areas of short term / long term impact
> consequences of decision in each area
> consequences of the consequences

Question 5

How do businesses thrive in economies?

Answer 5

When they specialise and have a niche, and can do this at scale

Question 6

How will you get an advantage over others?

Answer 6

By operating in your circle of competence where you have an edge over others.

Where are you disproportionately better than others?

Question 7

How should you ensure you make the most of opportunities in life?

Answer 7

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.

Question 8

Good story about incentives?

Answer 8

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.

Question 9

What are the 3 things that help with life’s challenges? (And one thing above all)

Answer 9

• 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.

Question 10

What does the captain cook story tell you about psychology?

Answer 10

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