Book

Poor Charlie's Almanack

Charles T. Munger

Mental models and inversion, collected from talks. The sections on incentives and on several forces compounding at once are the ones to annotate.

• Decision-making
• Incentives
• Investing

1 idea from this book

• FrameworkDecision-making

  Invert the question, and look at the incentives first

  Ask what would make this fail and who is paid for what before asking anything else.

  Diligence, deal structuring, reading any management proposal, and preparing for any decision you cannot easily reverse.