Bevelin - Seeking Wisdom · From Darwin to Munger

SEEKING WISDOM
From Darwin to Munger

Third Edition

PETER BEVELIN

To
my two children,
Victor and Sonia

Copyright 2003, 2005, 2007 by Post Scriptum AB. All rights reserved.

For permission to use copyrighted material, grateful acknowledgment is made to the copyright holders on next page, which is hereby made part ofthis copyright page. The author and publisher extend their apologies for any errors ofomissions and encourage any copyright owners inadvertently missed to contact them. Any errors, oversight or omissions will be corrected in subsequent editions.

Original publisher Post Scriptum AB

Stora Nygatan 25, S-211 37 Malmo Sweden

Fax + 46 40 97 42 66

PCA Publications L.L.C. Published under license from Post Scriptum AB, copyright owner.

Disclaimer ofWarranties and Exclusions ofDamages: The author and publisher make no representations or warranties with respect to the accuracy or completeness ofthe contents ofthis book and specifically disclaim any implied warranties ofmerchantability or fitness for a particular purpose. The advice and strategies contained herein may not be suitable for your situation. You should consult with a professional advisor before making any financial or life style decisions. Neither the publisher nor the author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential, or other damages.

Some ofthe names, characters, places and incidents in this book are products of the author's imagination or are used fictitiously. Any resemblance to actual events, locales, or persons, living or dead, is entirely coincidental.

Printed in the United States ofAmerica by Walsworth Publishing Company.

ISBN-13: 978-1-57864-428-5 (hard cover: alk. paper)

ISBN-IO: 1-57864-428-3 (hard cover: alk. paper)

For more information, please contact Peter Bevelin, AB Possessor Stora Nygatan 25, S-211 37 Malmo, Sweden or by e-mail to

Excerpt from "Track record is everything." From Across the Board, October 1991. Copyright 1991 by Across the Board. Reprinted by permission of The Conference Board Review; all rights reserved.

Excerpts from Berkshire Hathaway Inc. Annual Reports and An Owner's Manual. Copyright 1977-2006 by Warren E. Buffett. Reprinted by permission of Warren E. Buffett; all rights reserved.

Excerpts from Darwin, C.R. 1871. The decent of man, and selecion in relation to sex. London: John Murray, 1st edition. Volume 1. Copyright 2002-2007 The Complete Work of Charles Darwin Online - University of Cambridge - CRASSH 17 Mill Lane - Cambridge; all rights reserved.

Excerpt from Forbes Magazine. "The not-so-silent partner" by Robert Lenzner and David S. Fondiller, January 22, 1996. Copyright 1996 by Forbes Inc. Reprinted by permission of Forbes Magazine 2009 Forbes Media LLC; all rights reserved.

Excerpt from Cheating Monkeys and Citizen Bees: The Nature of Cooperation in Animals and Humans, by Lee Dugatkin. Copyright 1999 by Lee Dugatkin. Reprinted with the permission of The Free Press, a Division of Simon & Schuster, Inc.

Excerpt from Living Within Limits: Ecology, Economics, and Population Taboos, by Garrett Hardin. Copyright 1995 by Oxford University Press, Inc. Reprinted by permission of Oxford University Press, Inc.; all rights reserved.

Excerpt from The Ostrich Factor: Our Population Myopia, by Garrett Hardin. Copyright 1999 by Oxford University Press, Inc. Reprinted by permission of Oxford University Press, Inc.; all rights reserved.

Excerpt from The Psychology of Speculation, by Henry Howard Harper. Copyright 1966 by Fraser Publishing Company. Reprinted by permission of Fraser Publishing Company.

Excerpt from "Speed, Simplicity, Self-Confidence: An Interview with Jack Welch." Reprinted by permission of the Harvard Business Review. From "Speed, Simplicity, SelfConfidence: An Interview with Jack Welch" by N. Tichy & R. Charan, Sept/Okt 1989. Copyright 1989 by the Harvard Business School Publishing Corporation; all rights reserved.

Excerpt from OfP ermanent Value: The Story ofWa rren Buffett, by Andy Kilpatrick. Copyright 2000 by Andrew Kilpatrick. Reprinted by permission of Andrew Kilpatrick; all rights reserved.

Charles T. Munger.

Excerpts from Outstanding Investor Digest (OID) are reprinted by permission from Outstanding Investor Digest, Inc. Copyright 1986-2006; 295 Greenwich Street, Box 282, New York, NY 10007. All rights reserved. Telephone: (212) 925 3885. Website: www.oid.com .

Excerpts from "What is science?" by Richard Feynman. Reprinted with permission from The Physics Teacher, Vol. 7, Issue 6, Page 313-320, 1969. Copyright 1969, American Association of Physics Teachers, all rights reserved.

Excerpt from transcript #105 of Adam Smith's Money Game. Copyright 1998 by Adam Smith Educational Productions Ltd. Reprinted by permission of Adam Smith Educational Productions Ltd.; all rights reserved.

Excerpt from The Theory of Investment Value, by John Burr Williams. Copyright 1938 by John Burr Williams Jr. and John Burr Williams Family Trust. Published in 1997 by Fraser Publishing Company. Reprinted by permission of John Burr Williams Jr. and John Burr Williams Family Trust; all rights reserved.

Thanks to Charles Munger and Warren Buffett for their kind permission to quote extensively from their work. Thanks to Charles Munger who generously took the time to read the whole original manuscript. Thanks to Warren Buffett for his early encouragement of my first private memorandum - the foundation for this book - and his compliments on this work. I am deeply grateful to Peter Kaufman for his generosity in helping me getting this Third Edition into wide circulation. I am delighted to partner with him.