Editor: Peter D. Kaufman

Most people have heard of the “Oracle of Omaha,” Warren Buffet, but not everyone is privy to his equally intelligent partner Charlie Munger. It’s the combination of the two that makes Berkshire-Hathaway such a formidable company with an unbeatable track record over the past half-century.

Part of the reason is Charlie’s reluctance to be in the spotlight, or say much during their meetings. Buffet does most of the talking and is interviewed quite frequently.

This is the first (and only) book that compiles the lectures, wisdom and interviews of Munger  in one place. Its purpose is for you to get to know him and to absorb some of his wisdom.

I should warn you there is only one format for this book: a giant, oversized hardcover that is cumbersome to hold and annoying to carry with you anywhere. Forget about reading this sucker in bed because it’s not going to happen.

The book does not hold back that Charlie is a smart man. He’s fiercely intelligent and shows no signs of deteoriation despite his age. His children describe him as a “book with legs,” and I howl at the comment because that’s me… although my wife tells me if I want to continue being that way around the kids, there better be a billion dollars in assets nearby.

If I had to summarize the book, it would be with the following apocryphal story that is his favourite to tell:

I frequently tell the apocryphal story about how Max Planck, after he won the Nobel Prize, went around Germany giving the same standard lecture on the new quantum mechanics.

Over time, his chauffeur memorized the lecture and said, “Would you mind, Professor Planck, because it’s so boring to stay in our routine. [What if] I gave the lecture in Munich and you just sat in front wearing my chauffeur’s hat?” Planck said, “Why not?” And the chauffeur got up and gave this long lecture on quantum mechanics. After which a physics professor stood up and asked a perfectly ghastly question. The speaker said, “Well I’m surprised that in an advanced city like Munich I get such an elementary question. I’m going to ask my chauffeur to reply.”

He goes on to explain there’s a distinction between Planck knowledge and chauffeur knowledge. Planck knowledge is earned and shows true understanding of the world. Chauffeur knowledge is people shooting their mouths off pretending to know what they’re talking about, but really just re-hashing sound bytes heard elsewhere.

We’re a society plagued by chauffeur knowledge (especially our politicians) and it’s our duty to fill ourselves with Planck knowledge. This book is Munger’s attempt to move us in that direction.

A formidable read.