Michael Burry's investment strategy

At McKinsey, we charged $400k+ per presentation.

Here’s the simple 7-step framework we used (steal it for free)🧵:

McKinsey is paid to solve complex problems.

They created a process that helps find solutions:

The Hypothesis-Driven Framework.

Let’s dive in.👇

Start by Gathering Facts.

Most people skip this step. That's a huge mistake.

Take a few hours to understand the problem. Talk to a couple of experts.

Ask:
• What are the causes?
• How often does it happen?
• How solutions have you tried?

Now you're ready to start solving.

Generate an Initial Hypothesis.

Problems remain unsolved when people look for a solution without direction.

Ask yourself:

“Based on initial facts, what do I believe is causing this?”

That’s your Initial Hypothesis.

Build an Issue Tree

Solving one big problem is hard. Solving 20 small problems is easy.

Break the issue down into its smallest components:

1: Profits are down
1.1: Revenue is down
1.1.1: 30% of our clients moved to our cheap product
1:1.1.1: That product was recently upgraded

10 Websites for Entrepreneurs that will Save Hours of Work:

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Copy ai:

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Charlie Munger said that reading was the main reason for his success in life.

As a generalist, he reads about all kinds of topics.

I’m sure a List of Charlie Munger’s Book Recommendations is among the top 1% of lists you can get.

So here it is👇🏼

Influence - The Psychology of Persuasion by Robert Cialdini

Charlie Munger probably read enough on human psychology to become a professor himself.

His legendary talk at Harvard showcased this.

Robert Cialdini’s “Influence” was one of the books he learned from.

The Outsiders by William N. Thorndike Jr.

The Outsiders is about extraordinary CEOs who outperformed their peers by being radically different.

It’s an industry classic and recommended by Munger and many greats of the industry.

Man’s Search for Meaning by Viktor E. Frankl

Viktor Frankl was an Austrian psychologist and Auschwitz (concentration camp) survivor.

Man’s Search for Meaning is Frankl’s autobiography and deals with his theory of “Logotherapy.”

A theory about finding meaning and purpose.

The Autobiography of Benjamin Franklin

Benjamin Franklin was an inventor, scientist, writer and political philosopher.

Oh, he’s also kind of known for being one of the United States' founding fathers.

Franklin is one of the eminent dead teachers of Charlie Munger.

If you want to change your life, read these 48 books

1)

13)Defining Decade
14)Power of Now
15)How Will You Measure Your Life
16)Joys of Compounding
17)13 Things Mentally Strong People Don’t Do
18)Things No One Else Can Teach Us
19)I Will Teach You To Be Rich
20)Compound Effect
21)Can’t Hurt Me
22)Discipline Is The Destiny
23)…
24)…

25)The Almanack of Naval Ravikant
26)Psychology of Money
27)The Practising Mind
28)What I Wish I Knew When I Was 29)Finish What You Start
30)Eat That Frog
31)Atomic Habits
32)101 Essays That Will Change The Way You Think
33)Make Today Count
34)12 Rules For Life
35)…
36)…

37)The Art of Seduction
38)When All Is Not Well
39)Surrounded By Idiots
40)Games People Play
41)Discourses and Selected Writings
42)Creativity Inc.
43)Elon Musk
44)Predictably Irrational
45)Digital Minimalism
46)Getting Things Done
47)5 Am Club
48)Tuesdays With Morrie

If you want to give yourself a personal MBA, read these 10 books:

Zero to One
by Peter Thiel

Subject: Strategy and Positioning

Lessons:

• Last can be first
• Rivalry causes us to copy the past
• Progress comes from monopoly, not competition

Expert Secrets
by Russel Brunson

Subject: Marketing

Lessons:

• Maintain absolute certainty
• The riches are in the niches
• Convince with emotion first, then logic

$100M Offers
by Alex Hormozi

Subject: Sales

Lessons:

• Create grand slam offers
• Find the starving crowd
• The fundamental equation of value

Deep Work
by Cal Newport

Subject: Productivity

Lessons:

• Embrace boredom
• Create daily rituals
• Find your work-style
• Treat work like a craft

I went from "shyest man alive" to speaking on stage.

If you're a man struggling with confidence, read this:

I was arguably the shyest man alive.

I feared rejection
I rarely spoke up
I barely made new friends or approached women

People told me to my face "why do you never talk?"

Today I've realized the root of why I was so shy (you may have a huge epiphany moment reading this)...

As humans, we have a strong instinct to be liked by the people around us.

You see, 2000 years ago roaming the earth in tribes, you NEEDED to be liked or else you'd get kicked from your tribe, and face the mountain lions, disease, & conditions by yourself (basically meant death).

My route to achieve this human instinct - to be liked, was speak as little as possible.

Other people take a different route - speak as much as possible.

But at the end of the day, we are all aiming to be liked.

Now, I knew the root cause... how did I overcome this lack of confidence?

1st - you must accept shyness does not serve you.

Once you fully accept this and are open to change, there are 7 keys I identified that helped me become confident.

Here are the 7 keys to confidence:

The MOST overlooked skill in data science...

And it could get you a $20,000 promotion.

Here's how. 🧵

#datascience #stats #rstats

Text analysis is a treasure trove of predictive information.

Yet 90% of companies don’t know how to use it.

They are overlooking one of the most powerful and predictive sources of information…

In fact, text analysis is part of the strategy that I used to help double my business in 2022...

While companies like Facebook (Meta) lost 70% of their value.

My company went from $0.9M/year to $2,000,000 per year.

Using text analysis was a key piece.

So imagine how valuable you could become to your company if you doubled the part of the business you touch...

In less than 12 months.

They'd be more than happy to give you a $20,000 raise...

You just made them $1M. (or more)

But you need to learn Text Analysis so you can improve model performance...

Which leads to:

1. a better understanding of customers

2. a better understanding of products

3. better lead scoring

4. better marketing

5. $1,000,000+ ROI

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