Better Thinking / Decision Making

“Everything that can be counted does not necessarily count; everything that counts cannot necessarily be counted.” -Albert Einstein

“It’s not that I’m so smart; it’s just that I stay with problems longer.” -Albert Einstein

“Too little attention to second and higher order effects.  They chose not to consider effects of effects on effects, and so on, hence why predictions and projections can be so far off.  The movement of any individual piece affects, sometimes dramatically, the overall composition.” -Charlie Munger

“The craving for perfect fairness causes a lot of terrible problems in system function.  Some systems should be made deliberately unfair to individuals because they’ll be fairer on average for all of us.  Thus, there can be virtue in apparent non-fairness.” -Charlie Munger

“Science cannot solve the ultimate mystery of nature.  And that is because, in the last analysis, we ourselves are a part of the mystery that we are trying to solve.” -Max Planck

“Everything should be made as simple as possible, but no more simple.” -Albert Einstein

“It ain’t what you don’t know that gets you into trouble.  It’s what you know for sure that just ain’t so.” -Mark Twain

“You have to know when to trust experts where you have no wisdom at all and when you override experts who may have incentive caused bias.  In effect, you got to know what you know and what you don’t know.  What could possibly be more useful in life than that?  When you don’t know and don’t have any special competence, don’t be afraid to say so.  Don’t screw up the hive and do a bee dance you have no knowledge of.  Nobody expects you to know everything about everything.  Confidently answering questions about which you don’t have any real knowledge is asinine.” -Charlie Munger

“If you want to get smart,” Munger said, “the question you have to keep asking is ‘why, why, why?’  And you have to relate the answers to a structure of deep theory.  You’ve got to know the main theories.  And it’s mildly laborious, but its also a lot of fun.” -Charlie Munger

“Everybody engaged in complicated work needs colleagues.  Just the discipline of having to put your thoughts in order with somebody else is a very useful thing.” -Charlie Munger

“I am a biography nut myself,” said Munger, “and I think when you’re trying to teach the great concepts that work, it helps to tie them into the lives and personalities of the people who developed them.  I think that you learn economics better if you make Adam Smith your friend.  That sounds funny, making friends among the eminent dead, but if you go through life making friends with the eminent dead who had the right ideas, I think it will work better in life and work better in education.  It’s way better than just giving the basic concepts.” -Charlie Munger