Effortless

Insight: 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.

Insight: Charlie Munger believes that isolated facts and information is useless unless they are combined in the "latticework of theory".

Principle: Learn the best of what others have already figured out.

• Insight: Complexity increases cognitive load.
• Insight: Cognitive load increases the likelihood of errors in decision making, or the chances that we forget things.
• Principle: Do not try to remember too much: make a checklist or cheat sheet to reduce cognitive load.
• Principle: Simplify.

• Definition: After a certain point, each extra unit of input produces a decreasing rate of output
• Example: Producing 2 pages of writing after 2 hours, and 3 pages after 4 hours - the rate of output is slowing down.
• Insight: Past a certain point, more effort doesn't produce better performance, it can sabotage it.
• Insight: Negative returns means to decrease overall output with each additional unit of input.
• Principle: With any project, define what "done" looks like, then stop.
• Principle: Stop before diminishing returns sets in.

• Definition: Wu: "without". Wei: "do" or "act". We Wei: "without action".
• Insight: The goal of this philosophy is to accomplish what matters by trying to do less, not more.