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The New Investing

Thomson Texere,

15 min read
10 take-aways
Audio & text

What's inside?

Could Scientific American improve your investing more than BusinessWeek?

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Editorial Rating



  • Innovative


Robert G. Hagstrom convincingly advances the thesis that successful investing, in the long term, is dependent upon cross-connecting ideas from the whole spectrum of human experience. Working with seminal concepts from physics, biology, the social sciences, psychology, philosophy and literature, Hagstrom has crafted a roadmap for those who wish to elevate their decision-making processes. highly recommends this illuminating book to anyone willing to devote the necessary time and energy to improving investment performance by embracing concepts from less familiar disciplines.


Munger’s Mental Models

Charlie Munger, Warren Buffett’s partner at Berkshire Hathaway, is one of the most free-spirited and original thinkers in the world of investing. He likes to talk about stock picking as a "subdivision of the art of worldly wisdom." He preaches broad vision, the awareness that the market, or economics in general, are not separate disciplines that can be analyzed in a vacuum. Instead, says Charlie, they are part of the larger body of human knowledge. Psychology, physics, mathematics, literature and indeed all disciplines are intertwined. A thoughtful person will construct models based in each discipline, and use them to evaluate key ideas in a cross-disciplinary fashion, attaining thereby a much more comprehensive understanding of the whole.

Charlie’s distinctive metaphor for this interlocking of ideas is a latticework of models. Basically, when you can connect concepts from one discipline to similar ideas in another, greater comprehension of each ensues. In Charlie’s view (and the performance of Berkshire Hathaway validates this viewpoint) the creation of a latticework of understanding is a powerful way to achieve superior investment results. ...

About the Author

Robert G. Hagstrom’s first book, The Warren Buffett Way, sold more than 750,000 copies and spent 21 weeks on the New York Times bestseller list. He currently serves as Senior Vice President and Director for Legg Mason Focus Capital, a global financial services company. He lives with his family in Wayne, PA.

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