Insights:

1. Charlie Munger's approach to investing and life is the pursuit of "worldly wisdom". Combining learnings from a wide range of disciplines to produce something greater than the sum of its parts.
2. Charlie Munger believes that isolated facts and information is useless unless they are combined in the "latticework of theory".

Principle:

1. Learn the best of what others have already figured out.

Insights:

1. Complexity increases cognitive load.
2. Cognitive load increases the likelihood of errors in decision making, or the chances that we forget things.

Principles:

1. Do not try to remember too much: make a checklist or cheat sheet to reduce cognitive load.
2. Simplify.

Definition: After a certain point, each extra unit of input produces a decreasing rate of output.

Example:

1. Producing 2 pages of writing after 2 hours, and 3 pages after 4 hours - the rate of output is slowing down.

Insights:

1. Past a certain point, more effort doesn't produce better performance, it can sabotage it.
2. Negative returns means to decrease overall output with each additional unit of input.

Principles:

1. With any project, define what "done" looks like, then stop.
2. Stop before diminishing returns sets in.

Definition: Wu: "without". Wei: "do" or "act". Wu Wei: "without action".

Insight:

1. The goal of this philosophy is to accomplish what matters by trying to do less, not more.