Assignment: Decision Modeling

Charles Munger (1995), vice-chairman of Berkshire Hathaway, offers key insights on decision making and the tools, techniques, and critical skills that great managers develop and possess in his article "A Lesson on Elementary, Worldly Wisdom as it Relates to Investment Management & Business." According to his concept of "multiple models," different decisions require different means of evaluation.

Review his article by searching the Internet using the following keywords:

Charles Munger

Worldly wisdom as it relates to investment management and business

Respond to the following:

• What does Munger mean by mental models?
• What are a few of the other key points discussed by Munger?
• Why does he call psychology "an ungodly important subject"?
• Write your initial response in approximately 400 words. Apply APA standards to citation of sources.

Responses. Consider the following in your comments:

• Did anyone notice the number of models mentioned by Munger? Is that a lot?
• How does the accumulation of models relate to the development of business wisdom?
• Why are Braun's Five Ws such a powerful tool?
• How do permutations and combinations inform decision making and how does pattern recognition play into that concept?