Have you ever wondered what Batman & Robin would be like if Batman were the understudy to a more famously popular Robin? It would probably be a lot like the real-life dynamic duo of Warren Buffett and Charlie Munger.

As Chairman of Berkshire Hathaway, Buffett is the more familiar figure. He’s been featured in his own HBO special. He’s got his own “Oracle of Omaha” nickname. He’s chairman of Berkshire Hathaway. Munger is vice-chair of the same, and often described as Buffett’s sidekick, even though he’s the elder of the two, is also an astute Omaha native, and was running his own successful holding company while Buffett was still learning the ropes. As Buffett himself describes of Munger:

“[W]e’ve never had an argument. When we differ, Charlie usually ends the conversation by saying: ‘Warren, think it over and you’ll agree with me because you’re smart and I’m right.’”

So who’s the real “Batman”? Let’s turn the spotlight on Munger for a change, showcasing some of his “elementary worldly wisdom” – a phrase Munger uses to describe how he builds models for converting isolated insights into applicable common sense.

Translating the complex into useful ideas. This is something we like to do here at Hill Investment Group as well. To get a sense of how a master like Munger does it, here’s a 15-minute YouTube video with excerpts from a talk on human psychology, which Munger delivered at Harvard in 1995.

Munger uses approachable analogies ranging from Pavlov’s dogs and New Coke, to target shooting and gallbladder surgery to entertain and inform us with “how humans trick themselves into making terrible errors of judgment.”

In our best judgment, Munger is well worth watching and reading, with plenty more elementary worldly wisdom to share. If that’s of interest, let us know and we’ll be glad to tell you more.

In my early years with Hill Investment Group, here’s a question I would see in people’s puzzled faces almost every time I mentioned fund manager Dimensional Fund Advisors:

“Dimensional who?”

With the continued shift to evidence-based investing, the question has become something more like this:

“Who’s this ‘Dimensional Fund Advisors’ I keep hearing about?”

The name may be more familiar these days, but with their nerdy academic underpinnings and publicity-shy approach, it’s still a challenge to explain exactly what makes the firm tick. As the firm’s Investment Research Committee Chair Ken French says, “People at Dimensional care much more about getting the right answer than defending their answer.”

Fortunately, Dimensional has created a great new piece entitled “Inside Dimensional 2017.” Equal parts science, philosophy, and intellectual horsepower, it offers a fascinating tour through the firm’s inner workings – including an entire section dedicated to its “Data Dogs” and their use of computers to revolutionize the implementation of finance for investors.

Let us know if you would enjoy a behind-the-scenes peek at Dimensional’s people and culture, and we’ll gladly send you a copy of “Inside Dimensional.”

When I’m not busy helping people build long-term wealth via evidence-based investing, in my daydreams, I’m a starting pitcher in the major leagues.

Admittedly, if my dreams ever come true, I’ll probably throw out my shoulder on the third pitch, after giving up a couple of home runs. But besides that technicality, there actually are a number of similarities between my real day job and my fantasy career. I know this, because the Astros general manager Jeff Luhnow happens to be a fan of Matt Hall’s Odds On book. He even wrote an endorsement for the book, and he has stayed in touch with us ever since.

As we’ve covered before, author Michael Lewis published his now-iconic book Moneyball in 2003. Both the book and the award-winning motion picture showcase how Oakland A’s general manager Billy Beane employed empirical evidence over expert opinion, studied patience over rapid reaction, and cost control over splashy spending to take his underdog team in a dramatically new direction on a shoestring budget.

Sounds a lot like what we aim to do for investors, doesn’t it? But a happy Hollywood ending is one thing. Can the strategy really work over time in baseball, or was it a sensational flash in the pan?

That’s where additional data points from Luhnow come in, when he chose to take Beane’s analytical approach one step further with “extreme Moneyball,” as described in this 2014 Bloomberg piece. Similar to the A’s, the Astros were underperforming at the time – big time. They literally had the worst record in baseball EVER during the first two years of Luhnow’s tenure.

Then came his fresh, evidence-based approach. The Astros made the American League playoffs in 2015 and, as I draft this piece, this recent Wall Street Journal piece describes Luhnow’s data-driven shift to maintain the team’s home run averages while reducing its strike-outs. The results so far? The WSJ reports: “More than 40% of the way through the season, the Astros own the best record in the majors, blitzing the competition with a lineup that defies all logic.”

Well, not all logic.  The article also describes Luhnow as the “architect of perhaps the sport’s most data-driven organization.”

If you ask me, that probably explains it. Will the Astros take their first World Series in their 55-year history? Either way, come what may, I look forward to seeing what they have in store for 2017!