Charlie Munger, is VP of Berkshire Hathaway but is the lesser known business partner of Warren Buffet.
One of the best ways to learn is not by talking about how we SHOULD live but by being honest and studying the lives of those around us.
Charlie has obviously lived an extraordinary life and I want ROL readers to have a quick 5-10 min master class on what we can learn from Munger’s life .
- Can can anyone gain wisdom? Use a multidisciplinary approach. Use and learn the models from the many fields around – economics, mathematics, and pyschology.
- “Munger has said that, although he has accumulated an outstanding record as a stock picker and accumulated substantial wealth, people should not emulate his example in life in general. He believes his life has been too devoted to improving his own mind and that peculiarities of his personality (including, but not limited to, irreverence) will make people unpopular if they blindly follow his example.” – Charlie Munger: The Complete Investor
- “The best thing a human being can do is help another human being know more. I observe what works and what works and most importantly WHY? WHY? WHY?” – Munger
- “I’m a great believer in solving hard problems by using a checklist. You need to get all the likely and unlikely answers before you; otherwise it’s easy to miss something important.” – Munger
- Four Principles: “Treat a share of stock as a proportional ownership of the business. Buy at a significant discount to intrinsic value to create a margin of safety. Make a bipolar Mr. Market your servant rather than your master. Be rational, objective, and dispassionate.”
- If you don’t care about investing and am not in the top 1-3% of investors, remember It’s not possible for investors to consistently outperform the market since the market price eventually reaches equilibrium. Therefore, you’re best served investing in a diversified portfolio of low-cost index funds or exchange-traded funds.
- Life is like a poker game. You have to learn is to fold early when the odds are against you. If you have a great hand, back it heavily because you don’t get it often. Opportunity comes, but it doesn’t come often, so seize it when it does come. Show the back side of your card to everyone but only reveal your face, heart, and soul to loved ones.