The agent ecosystem course
  • 0Before you start
  • 1Claude Code
  • 2The mental model
  • 3Map your ecosystem
  • 4The brief
  • 5The connectors
  • 6The runbooks
  • 7Working hours
  • 8The ecosystem
  • 9The backup
  • 10Sharing skills
  • 11Getting found
  • 12Great minds

The stages

  • 0Before you start
  • 1Claude Code
  • 2The mental model
  • 3Map your ecosystem
  • 4The brief
  • 5The connectors
  • 6The runbooks
  • 7Working hours
  • 8The ecosystem
  • 9The backup
  • 10Sharing skills
  • 11Getting found
  • 12Great minds
    • 12.01The Munger test, the surest ways your decision could fail
BACK TO THE COURSE

Stage twelve, any time

Great minds

A famous thinker's own method made into a Claude skill, one part each, and a new one every Thursday.

12.01

The Munger test, the surest ways your decision could fail

The Munger test is a skill that asks Claude for the surest ways your decision could fail, then checks your plan against every one.

It is Charlie Munger’s inversion. Warren Buffett’s business partner borrowed a line from the mathematician Jacobi, “invert, always invert”, and worked out how to get what he wanted by studying how to get the opposite, like the countryman who wished he knew where he was going to die, so that he would never go there.

You“Munger test this”
ClaudeThe surest ways it could fail
ClaudeYour plan checked against each
YouFix them, then decide

You need it because asking Claude whether something is a good idea gets you a weighed-up answer, and if you sound keen, a probably yes.

Asked how the same decision would fail, it has nothing to agree with, so what comes back is a list of the mistakes your plan is already making, including what might be fooling you, like someone paid if you say yes or a deadline, with a rule for each and what your plan already gets right, and it is worth it before a price rise, a hire, a new supplier or a programme you are being sold, not on a small choice.

Paste this into a chat in your ecosystem folder and it writes the skill.

Then say “Munger test this” before a decision that matters, and fix what it finds before you decide.

Set up the Munger test
Write me a skill called munger-test, for a big decision I'm about to make. Write its description as the sentences I actually say, like "Munger test this" and "how would this fail", and say it is for a price rise, a hire, a new supplier, a programme I'm being sold or a big client, never a small choice. When it runs, it does this, in order: 1. Says my decision back to me in one sentence, and what I want to get from it, and asks me one question if either is unclear. If the decision is small and easy to undo, it says so and keeps the whole report short. 2. Reads what this folder already holds about my business before it writes anything, and tells me which files it read. 3. Turns the question round, the way Charlie Munger did, and lists the surest ways this decision fails, the likeliest first and no more than seven. It draws them from what my files show, from how decisions like this usually go wrong for other small businesses (labelled as general knowledge, never with made-up figures), and from Munger's checklist of what might be fooling me: someone who is paid if I say yes, a deadline, overoptimism, doing it because others do, liking the person selling it, carrying on because I've started, deciding while stretched, or needing a skill I haven't got. It names only the ones my files show, and says when several push the same way. 4. Checks my plan against each one and tells me whether my plan already does it, might do it or avoids it, or that it's unknown if my files don't say, with the line from my files that shows it. 5. Turns each way to fail into a rule for what not to do, with the cheapest fix or check before I commit and who can answer it. 6. Ends on the two my plan is closest to, says plainly what my plan already avoids, and leaves the decision to me. It keeps the report under about 600 words, in short lists rather than tables, quotes my files and labels anything that is an estimate, and it writes nothing else and sends nothing. Show me the file.

In the Claude app, with no folder for a skill to live in, paste this into a new chat each time instead. It asks you about your business rather than reading it, so it is less sharp than the skill.

Run it once
I'm about to make a big decision. Test it the way Charlie Munger would, by turning it round. Ask me what the decision is and what I want from it, one question at a time. Then list the surest ways to make it fail for a business like mine, likeliest first, including anything that might be fooling me, like someone paid if I say yes, a deadline or overoptimism. Check my plan against each, turn each into a rule for what not to do, say what my plan already gets right, and end on the two it is closest to. Never tell me whether to go ahead.

Munger set out the method in his 1986 commencement speech at the Harvard School, How to guarantee a life of misery, which answers how to have a good life with a list of sure ways to a miserable one, and says that many hard problems are best solved only when they are addressed backward. The checklist of what misleads people, with incentives first, is from The psychology of human misjudgment.

The agent ecosystem course

Great minds

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