The Schwar Report - Issue 5
Monday 16th September 2024
Welcome to this weeks edition of The Schwar Report, your weekly primer featuring three interesting reads, two thought-provoking quotes, and one actionable step to start your week on the right foot.
Three Reads to Inspire Your Week
“Poor Charlie's Almanack: The Essential Wit and Wisdom of Charles T. Munger" edited by Peter D. Kaufman
Why read it: This book is a treasure trove of wisdom from the late Charlie Munger, Warren Buffett's long-time business partner. It offers invaluable insights into Munger's multidisciplinary approach to decision-making, investing, and life. The book combines Munger's talks, lectures, and witty observations, providing readers with a comprehensive guide to developing "worldly wisdom" and improving their thinking processes. One of our all time favourite books!
“Key Lessons from Chuck Akre" by The Compounding Tortoise
Why read it: This article delves into the investment philosophy of Chuck Akre, a renowned investor known for his "three-legged stool" approach. It offers valuable insights into identifying high-quality businesses, understanding the importance of reinvestment rates, and the power of compounding.
“Meta Platforms Valuation Update" by
Why read it: This analysis offers a deep dive into the valuation of Meta Platforms (formerly Facebook). It provides a detailed examination of the company's financials, growth prospects, and potential risks. The article is an excellent example of applying fundamental analysis to a tech giant, demonstrating how to evaluate complex businesses in rapidly evolving industries.
Two Quotes to Reflect On
"Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day-if you live long enough-like most people, you will get out of life what you deserve."
— Charlie Munger
Reflection: This quote emphasises the importance of continuous learning and personal growth. It reminds us that wisdom is accumulated gradually through daily efforts and experiences.
"I believe in the discipline of mastering the best that other people have ever figured out. I don't believe in just sitting down and trying to dream it all up yourself. Nobody's that smart."
— Charlie Munger
Reflection: Munger highlights the value of learning from others' experiences and insights. This approach can help us avoid reinventing the wheel and make faster progress in our personal and professional lives.
One Action Step: Create Your Personal Latticework of Mental Models
This week, challenge yourself to start building your own "latticework of mental models," a concept championed by Charlie Munger. Begin by identifying three mental models from different disciplines (e.g., psychology, economics, biology) that you find interesting or relevant to your work or personal life.
Quick Tip: Choose one mental model to focus on each day. Read about it, reflect on how it applies to your experiences, and try to use it in your decision-making process. At the end of the week, review how these models have influenced your thinking and problem-solving approach.
That’s it for this week’s Schwar Report. As always, we’re here to help you stay informed, grounded, and focused on your long-term success.
Have a productive week,
The S.C. Team
Disclaimer: The content provided in this newsletter is for informational purposes only and does not constitute financial, investment, or other professional advice. While we believe the information to be reliable, we cannot guarantee its accuracy. The opinions expressed are those of the author and do not necessarily reflect the views of Schwar Capital. Investing involves risk, including the possible loss of principal. Past performance is not indicative of future results. The author may or may not hold positions in the stocks or other financial instruments mentioned. Always do your own research or consult with a qualified financial advisor before making any investment decisions.