Should You Pay Off Debt or Invest?
In this episode of The Decade Investor Podcast, Kolin talks through the pros of paying off debt before investing and the pros of investing while paying down your debt.
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In this special episode of the Moonshots Podcast, hosts Mike and Mark pay tribute to the legendary American investor and philosopher Charlie Munger, who sadly passed away recently. Charlie Munger, often referred to as Warren Buffett’s right-hand man, was known for his profound wisdom, unique insights, and exceptional ability to make sound investment decisions. In this episode, the hosts delve into one of Munger’s most significant contributions to finance and decision-making – the Book “Latticework of Mental Models.”
The episode is structured around six insightful audio clips that capture the essence of Charlie Munger’s philosophy:
Charlie Munger emphasizes the importance of lifetime learning and wisdom acquisition. He encourages listeners to become learning machines, setting the stage for deep diving into his mental models.
The hosts explore how Munger’s thinking tools have guided his remarkable career, highlighting the significance of these mental models in investing.
Mike and Mark uncover Munger’s secret to learning new skills and behaviors, emphasizing the learning method and the need to acquire knowledge continuously.
Listeners are introduced to Munger’s Swiss army knife of mental models and the importance of having multiple tools for decision-making in various scenarios.
The hosts discuss how Munger’s philosophy encourages thinking differently and embracing uncommon sense. They also explore the value of asking ‘why,’ which Munger considers the world’s most intelligent question.
The episode concludes with Munger and Warren Buffett discussing minimizing mistakes by learning from other people’s errors. They remind us that life is short and wisdom is gained by avoiding unnecessary pitfalls.
In addition to the audio clips, the hosts provide insights into Charlie Munger’s remarkable life and career. They explore his early education in mathematics and law, his transition into investing, and his pivotal role in Berkshire Hathaway’s transformation into a global conglomerate. The episode also delves into Munger’s multidisciplinary approach to investing, his philanthropic endeavors with his wife Nancy, and his influential public speaking engagements.
The hosts emphasize that Munger’s “Latticework of Mental Models” concept is a powerful tool for decision-making in various aspects of life. They highlight some key mental models Munger mentioned, including opportunity cost, margin of safety, incentives, circle of competence, and bias from deprival-superreaction tendency. These mental models serve as a practical guide for listeners to enhance their thinking and decision-making abilities.
Join Mike and Mark in this episode as they pay homage to the legacy of Charlie Munger and explore the profound wisdom he shared with the world through his latticework of mental models.
Summary: Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger
In this episode of The Decade Investor Podcast, Kolin talks through the pros of paying off debt before investing and the pros of investing while paying down your debt.
Jared is a former trader for Lehman Brothers, the editor of The Daily Dirtnap, a market newsletter for investment professionals, and the author of No Worries: How to Live a Stress-Free Financial Life. Today on the show, Jared talks about the two biggest sources of financial stress — debt and risk — and how you can eliminate the stress they can cause. We discuss how three big financial decisions — buying a car, buying a house, and managing student loans — ultimately determine your financial health, and how to approach each of them in a stress-eliminating way. We also talk about how to minimize risk by creating what he calls an “awesome portfolio,” a mix of assets that has nearly the return of the stock market with half its risk. And Jared shares whether cryptocurrency fits into his “no worries” financial philosophy.
Discussion about Naval's profound insight that getting rich is about knowing what to do, who to do it with and when.