A Guide to Avoiding Shallow Opinions and Conjecture

The world is full of talking heads, and it can be difficult to determine who is truly knowledgeable and who is simply putting on a show. Charlie Munger, Warren Buffet's partner and a billionaire, differentiates between "Planck knowledge" and "chauffeur knowledge". Planck knowledge is acquired through a lifetime of deep commitment and effort, while chauffeur knowledge is acquired through the art of talking meaninglessly.

Nobel science winner Richard Feynman described the difference between the two as knowing the name of something (chauffeur knowledge) versus actually knowing something (Planck knowledge). In many cases, the more articulate and well-spoken someone is, the greater the chance that they have chauffeur knowledge. This type of knowledge is often based on rote learning, where facts and anecdotes are simply repeated without true understanding.

It's important to be aware of the distinction between Planck and chauffeur knowledge, especially when it comes to making critical decisions about our businesses and lives. Too often, we rely too heavily on information from sources with chauffeur knowledge, leading us to make decisions based on shallow opinions, conjecture, and superficial analysis.

In his book "The Art Of Thinking Clearly", Rolf Dobelli writes about the same superficiality in business. The larger a company, the more the CEO is expected to possess "star quality", but dedication, solemnity, and reliability are often undervalued. Too often, shareholders and business journalists believe that charisma and charm are enough to lead a company to success, but in reality, it takes a deep understanding of the industry and a commitment to making informed decisions.

To avoid relying on chauffeur knowledge, it's important to seek out sources of information that are grounded in expertise and experience. This can involve investing time and effort into learning about a subject, seeking out advice from trusted sources, and avoiding sources of information that rely on conjecture and shallow analysis.

In conclusion, the difference between Planck and chauffeur knowledge is critical to understand. By distinguishing between the two, we can avoid making decisions based on shallow opinions and conjecture, and instead, base our decisions on a solid foundation of knowledge and expertise.