How to Make Better Investment Decisions? | Charlie Munger & the Mental Model Factory

Рет қаралды 26,674

Күн бұрын

► Need Term or Health Insurance?
Schedule a free 30-minute consultation : ditto.sh/0bxlo5
► 26,000+ readers have joined my Investing Newsletter
Subscribe Now : shankarnath.com
Use the code SKN20 for 20% Discount on Quantitative Investing Strategy course fees
👉 fisdom.academy/courses/Quanti...
In this video, we explore how mental models are the frameworks that shape our actions and guide us in decision-making. To help us with this, we'll explore the mental models used by the legendary Charlie Munger and pick some of the best ones that have helped Mr. Munger with better decision making. We'll look at:
1. Swiss Army knife approach wherein having a diverse toolkit of mental models equips us to navigate life's complexities
2. Inversion i.e. thinking in reverse and by understanding what not to do, you can arrive at superior solutions
3. Compounding is where we start small and grow our investments steadily leading to exponential returns over time
4. Occam's Razor focusses on simplicity; Munger and Buffett emphasize investing in simple businesses that require fewer assumptions, ultimately yielding better outcomes
5. Specialization and like organisms in nature, businesses that specialize in specific niches thrive. Focusing on what you excel at can set you apart in both nature and business.
6. Betting Odds and Value Investing: Analyzing betting odds parallels investing - seeking undervalued assets with favorable odds is the key to successful investing.
7. Margin of Safety: A safety buffer in investments guards against errors in estimation
8. Incentives: Understanding and aligning with the right incentives is crucial. Incentives drive behaviour and profoundly influence outcomes in business and life.
👉 Download the Fisdom app:
fisdom.onelink.me/VCH6/Shanka...
👉 Video Chapters:
00:00 What is a Mental Model?
01:23 1. Swiss Army Knife
02:52 2. Invert, Always Invert
04:51 3. Compounding
06:24 4. Occum's Razor
09:14 5. Survival of the Fittest
11:14 6. Parimutuel Betting
13:00 7. Margin of Safety
14:22 8. Superpowerful Incentives
15:14 Shankar's Viewpoint
🙌 Join my community on:
‣ KZfaq: / @shankarnath
‣ Instagram: / shankarnathofficial
‣ LinkedIn: / shankarnath
‣ Twitter: / shankarnath
👉 Additional Reading material:
‣ Toolkit by Safal Niveshak: www.safalniveshak.com/wp-cont...
‣ Playlist on Mental Models by Swedish Investor: • Charlie Munger: Mental...
#mentalmodels #charliemunger #survivalofthefittest #inversion #swissarmyknife #compounding
Disclaimer: I am not a SEBI registered investment advisor or research analyst. I am not registered with PFRDA or IRDA either. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented. Some of the links I have posted in the video, the description, the comments and other related resources might be affiliate links

Пікірлер: 82

@karthikeyanv463 10 ай бұрын

"I am just Shankar and not Jaishankar"... 😂😂😂.. but you are 'Dhan'Shankar for us😊

@shankarnath 10 ай бұрын

Ha ha 🙌

@onceuponascale 10 ай бұрын

A Surprising angle of approach for that one. Which makes it all the more interesting, as you bring more than the usual balance sheet and momentum critireas. And ultimately offers a lot of very insightful ideas and concept. Thank you.

@shankarnath 10 ай бұрын

Most welcome. Glad you liked it

@deepakshukla2527 9 ай бұрын

Highly undervalued channel... I'll invest in it.... With high margin of safety 😅

@shankarnath 9 ай бұрын

Thank you for your support

@Santawithwings 10 ай бұрын

Yes, please! All for the series.

@dhwanilrambhiya1235 10 ай бұрын

Shankarji can you make a video on career roadmaps or future jobs in capital markets and investment industry?

@shankarnath 10 ай бұрын

Sure, it's there in my content queue already

@lakshminarasimhanpb506 10 ай бұрын

@@shankarnaththanks, glad to see this msg 😊

@Anbu-Ini 10 ай бұрын

Thanks for the great content Shankar sir.. learnt awesome new concepts..

@shankarnath 10 ай бұрын

So nice of you. Most welcome!

@rajpachori 10 ай бұрын

Simply amazing! As always👌

@shankarnath 10 ай бұрын

Thank you so much 😀

@baibhavRishu 10 ай бұрын

Amazing sir, do more of these kinds of video

@shankarnath 10 ай бұрын

Glad you liked it. Yes, I want to do more videos of this & learn more about how other investors/personalities think. This is also a mental model .. wherein you can borrow the best learning parts of a life already lived by studying how the winners won and the losers lost.

@amirtharajrathinam391 10 ай бұрын

Thankyou Mr SN for your wonderful video.

@shankarnath 10 ай бұрын

My pleasure. Glad you enjoyed it

@SSB2706 10 ай бұрын

Amazing education video, thank you

@shankarnath 10 ай бұрын

Most welcome. Glad you enjoyed it!

@user-qo2hu2ze7n 10 ай бұрын

awaiting for the exciting series on mental models.

@shankarnath 10 ай бұрын

Sure, will work on diverse content

@Sarwesh-nd9hv 10 ай бұрын

Respect to the guy who is editing, feels fresh

@wisdomhatchwithsuresh 10 ай бұрын

Every 3 days of School makes me divinely feel❤❤❤Shankar Anna means class❤❤❤

@shankarnath 10 ай бұрын

I'm happy you are liking the content, Suresh. Happy learning to you!

@ashok______ 10 ай бұрын

Thank you so much for these videos Shankar Sir. Could I somehow invest in your KZfaq channel. I'm sure this is a future multibagger.

@shankarnath 10 ай бұрын

Most welcome. Well, I won't invest in my KZfaq channel :) .. here's a couple of reasons why: 1. Person driven (if I lose interest or something happens to me then the investment is sunk) 2. Platform centered (a single platform and it's unknown algorithm has a bearing on success; a creator might make excellent content but he/she might not get views as there is a gatekeeper here (KZfaq) whose priorities might be different) Just having a little fun here. Thank you very much for your kind appreciation and good wishes.

@reyansharma8363 10 ай бұрын

Please make it a series

@atulmittal8195 10 ай бұрын

Hello Shankar, how long does it take you to make a gem of video like this ?

@shankarnath 10 ай бұрын

Hi. It takes about 40 hours - Research, scripting & editing support (me) : 25 hours - Editing (editor) : 12 hours - Recording (videographer) : 3 hours

@shanthgaitonde 10 ай бұрын

This is brilliant stuff!

@shankarnath 10 ай бұрын

Thank you very much!

@manupratap1037 10 ай бұрын

Well done...

@shankarnath 10 ай бұрын

Thanks

@satishrana9735 10 ай бұрын

TRULY A GREAT VIDEO I HAVE COME ACROSS... GREAT

@shankarnath 10 ай бұрын

Glad it was helpful!

@talktomanick 10 ай бұрын

Please create similar topics, thank you 🙏

@shankarnath 10 ай бұрын

Sure 👍 .. glad you liked it!

@RAHULTALKS. 10 ай бұрын

Please continue sir as series

@shankarnath 10 ай бұрын

Will do; glad you found it useful

@neerajjoseph8963 10 ай бұрын

loved it❤

@shankarnath 10 ай бұрын

Thank you Neeraj

@shabeerkt5169 10 ай бұрын

Great video 🎉

@shankarnath 10 ай бұрын

Thank you 😁

@Sarwesh-nd9hv 10 ай бұрын

Sir, Try to do daily one video on how market went today, it will help to follow you daily and market , because your explanation can be understood by anyone, just an 10min video of overview and we are good 😊

@shankarnath 10 ай бұрын

Thanks for the suggestion

@nabeelyahiya 10 ай бұрын

Insightful ❤

@shankarnath 10 ай бұрын

Thanks!

@murga143 10 ай бұрын

Pls do make such more videos on mental models

@shankarnath 10 ай бұрын

Will do

@Bhapan 10 ай бұрын

Yes, sir any thinker you like

@shankarnath 10 ай бұрын

Thanks 🙌

@bsmanjuhassan8918 10 ай бұрын

NICE SIR...

@shankarnath 10 ай бұрын

Thanks!

@Arihant997 10 ай бұрын

Race horsing example really good

@kartikkapoor1658 10 ай бұрын

Grt one

@shankarnath 10 ай бұрын

Thanks 🙂

@yashagar4443 9 ай бұрын

Awesome

@shankarnath 9 ай бұрын

Thanks

@sourabhmayekar3354 10 ай бұрын

Nice

@shankarnath 10 ай бұрын

Thanks

@hemanthkaja 10 ай бұрын

Great content as always. Thanks for the video Shankar ji. Could you also add how to effectively get these mental models working in our heads? Where and how do we start? How to progress? Everyone can know the Model but true learning comes with the application, I believe and that makes a big difference 🙂

@shankarnath 10 ай бұрын

Thank you very much. You should double down on this with a reading of articles on Farnam Street (fs.blog/) for more in-depth notes on how to put it into action.

@gauravmalhotra2272 10 ай бұрын

Please do series

@shankarnath 10 ай бұрын

Sure, will work on diverse content like this. Everything helps in modelling the thinking better

@gauravmalhotra2272 10 ай бұрын

@@shankarnath Your videos have lot of valuable insights please keep up the great work.

@shankarnath 10 ай бұрын

@@gauravmalhotra2272 Thank you very much, Gaurav ji

@vimalkumarg9727 10 ай бұрын

Please do a video on allother legends sir.thanks

@shankarnath 10 ай бұрын

Will do 🙌 Anyone in particular? Can I have your top 2 choices and why

@vimalkumarg9727 10 ай бұрын

ellon musk @@shankarnath

@venkateshrvd8188 10 ай бұрын

Shankar , why dont you share same content in Tamil . i thought you know tamil . because all your content are good as well us media power to reach another side of india . just my view

@shankarnath 10 ай бұрын

Thanks for the suggestion

@SasiGudla 10 ай бұрын

Other thinkers also pleaaaase

@akhaleefa 10 ай бұрын

You are one of the best Shankar Nath Ji. Please aim to take up a big job of teaching stock market investment to the whole country. Your knowledge and skills seems to be amazing related to stock market. If you can do free service passionately in this field retail investors of India will grow fastest. A country of 143 crore people cannot remain developing even after 75 years of independence. So please see if you can think of benefitting many many Indians by your knowledge and skills of stock market. Thank you Shankar Nath Ji.

@shankarnath 10 ай бұрын

Thanks for the suggestion

@reyansharma8363 10 ай бұрын

I’m feeling lucky

@talktomanick 10 ай бұрын

Perfekt Deutsch!

@shankarnath 10 ай бұрын

danke schon