it. I don’t mean to say that he’s only had 10 insights. I’m just saying that most of the money came from 10 insights. - Charlie Munger

Well, the first rule is that you can’t really know anything if you just remember isolated facts and try to bang ‘em back. If the facts don’t hang together on a latticework of theory, you don’t have them in a usable form. You’ve got to have mental models in your head. And you’ve got to array your experience, both vicarious and direct, on this latticework of models.

The idea that life is a series of adversities and each one is an opportunity to behave well instead of badly is a very, very good idea.

As he says, “We have three baskets for investing: yes, no, and too tough to understand.