Important anecdotes from legendary investor Charlie Munger
Today’s thoughts are dedicated to the great Charlie Munger, whom I discovered relatively late in life. His almanack and various other insights are a true gem for anyone, not only those in finance. I would argue that his life wisdom was of equal, if not even greater, importance. At least it was for me.
He was one of a kind and will be greatly missed. A man growing up amid an economic depression, then the Second World War, losing a son early due to cancer, you would think he has grown miserable and resentful. On the contrary, all his life experiences have made him a humble and principled rarity, which should give us a guiding light for any life moments we encounter.
I have therefore chosen to release some of my personal notes on his most important anecdotes, which have helped me tremendously, and I truly hope they will do the same for you, too.
- Be Reliable
This one should be self-explanatory. Throughout my life and career, I have set myself to be the most reliable colleague, boss and partner. I expect the same from others. Reliablity builds trust.
- Avoid Self-pity.
That’s a negative spiral. Bad things happen. Play the odds. Come back stronger.
- Stay away from Envy.
Envy only leads to dark places. I’ve been there. Don’t do it.
- Use inversion to solve problems.
Avoiding stupidity often can lead to success. Uncover blind spots and analyse the most fragile points in anything you encounter.
- Work with/for people you admire
Learning from others, the good and the bad, will make you better. If you can’t admire anyone anymore, seek new people.
- Stay away from strong ideologies.
The flipside is keeping an open mind. Be open. Strong opinions can be good, but only if held loosely.
- Wisdom acquisition is a moral duty.
Learn, learn, learn. And then some more.
- Have low expectations (to be happy).
Getting harder in our society. Avoid moving the anchor.
- Never feel like a victim (even if you are)
Don’t trap yourself psychologically. Never.
- Discharge your duties faithfully and well.
This seems to be lost on so many people these days.
- Be rational. Don’t fall in love with your ideas.
Again, keep an open mind. Change if circumstances dictate so.
- Cut off toxic people from your life, And do it fast.
And live better ever after.
- When dealing with people, think about incentives.
Incentives make the world go around. It’s not only money-related; people are usually driven by something. Find out what it is they are after.
- Be a giver, and surround yourself with other givers.
Givers, where are you?
- The best way to get what you want is to deserve it.
No shortcuts; work for it. It will pay off.
- Don’t overspend your income.
It's easier said than done. But hold onto your budget. It will serve you longer term.
- Invest long-term.
Short-termism is a disease. Plan and invest with time horizons in mind.
So much wisdom; I can’t add much more (yet). Let’s now look at the week ahead!