10 Bits of Wisdom from Charlie Munger (Warren Buffett’s Right Hand Man)
Charles Thomas Munger (born January 1, 1924) is an American investor, businessman, and philanthropist. He is vice chairman of Berkshire Hathaway, the conglomerate controlled by Warren Buffett. Buffett has described Munger as “[his] partner.”
His book, Poor Charlie’s Almanack has been recommended by Tim Ferriss many times.
Here are a couple of his nuggets:
“Go to bed smarter than when you woke up.”
“People calculate too much and think too little.”
“Envy is a really stupid sin because it’s the only one you could never possibly have any fun at. There’s a lot of pain and no fun. Why would you want to get on that trolley?”
“Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.”
“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time — none, zero. You’d be amazed how much Warren reads — and at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”
“Mimicking the herd invites regression to the mean (merely average performance).”
“The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.”
“It’s not possible for investors to consistently outperform the market. Therefore you’re best served investing in a diversified portfolio of low-cost index funds [or exchange-traded funds].”
“We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. So Warren and I do more reading and thinking and less doing than most people in business.”
“The great algorithm to remember in dealing with this tendency is simple: an idea or a fact is not worth more merely because it’s easily available to you.”
Take some of Charlie’s advice and go read something that will make you smarter than you are right now, like more articles in The Mission.
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