Munger is a big proponent of independent thinking in investing. In thinking independently, it’s wise to remember Seth Klarman’s view that a Graham value investor is a marriage between a contrarian and a calculator. Falling in with the crowd due to social proof means it is mathematically impossible to outperform the market. Independent thinking can be an opportunity to arbitrage the tendency of people to follow the crowd. Profit can be made by sometimes zigging when the crowd zags if you see a wager in which the odds are substantially in your favor. It is not enough to be contrarian; you must
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