Warren Buffett calls Charlie Munger as the smartest man he knows. Charlie Munger is the vice chairman of Berkshire Hathaway and Warren Buffett’s longtime friend and business partner, died at age 99.
Charlie Munger suffered a lot in his life. - His son died at the age of nine. - Divorced from wife. - Lost his eye. - Second wife's death. Even after of such adversities, he survived and thrived in Life. Taught us end number of life and investing lessons.
The Powerful Quotes of Charlie Munger:
- I constantly see people rise in life who are not the smartest, sometimes not even the most diligent. But they are learning machines. They go to bed every night a little wiser than they were that morning.
- Those who keep learning, will keep rising in life.
- There will never be any shortage of good people in the world. All you got to do is seek them out and get as many of them as possible into your life. Keep the rest the hell out.
- Like Warren, I had a considerable passion for getting rich, not because I wanted Ferrari’s — I wanted independence. I desperately wanted it.
- The big money is not in buying or selling, but in the waiting.
- You need patience, discipline, and agility to take losses and adversity without going crazy.
- It takes character to sit with all that cash and to do nothing. I didn't get to the top where I am by going after mediocre opportunities.
- In my whole life, I have known no wise people who didn't read all the time - none, zero. You'd be amazed at how much Warren reads -at how much I read. They think I'm a book with a couple of legs sticking out.
- The best thing a human can do is to help another human being know more.
- The first rule of compounding: Never interrupt it unnecessarily.
- We recognized early on that smart people do very dumb things, and we wanted to know why and who, so that we could avoid them.
- Remember that reputation and integrity are your most valuable assets and can be lost in a heartbeat.
- Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.
- Live within your income and save so you can invest. Learn what you need to learn.
- If a business earns 18% on capital over 20 or 30 years, even if you pay an expensive-looking price, you’ll end up with a fine result.
- The desire to get rich fast is pretty dangerous.
- We have a passion for keeping things simple.
- To get what you want, you have to deserve what you want. The world is not yet a crazy enough place to reward a whole bunch of undeserving people.
- The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.
- Envy is a really stupid sin because it’s the only one you could never possibly have fun at. There’s a lot of pain and no fun. Why would you want that?
- Invert, always invert: Turn a situation or problem upside down. Look at it backward.
- It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be intelligent.
- Generally speaking, envy, resentment, and self-pity are disastrous modes of thoughts.
- Self-pity gets fairly close to paranoia, and paranoia is one of the very hardest things to reverse.
- We say having a certain temperament is more important than brains. You need to keep raw, irrational emotion under control.
- What is the secret of success? I’m rational. That’s the answer. I’m rational. 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]
- I’ve seen so much folly and stupidity on the part of our major philanthropic groups, including the world bank. I really have more confidence in building up the more capitalistic ventures like Costco.
- Always take the high road; it’s far less crowded.
- It’s the work on your desk. Do well with what you already have and more will come in.
- The best armour of old age is a well spent life preceding it.
31. There are only three ways a smart person can go broke: 1) Liquor 2) Ladies. 3) Leverage.
32. A great business at a fair price is superior to a fair business at a great price.
33. Understanding both the power of compound interest and the difficulty of getting it is the heart and soul of understanding a lot of things.
Charlie Munger gave best speech on The Psychology of Human Misjudgment at Harvard University 👇
25 Cognitive Biases that ruin your life:
Warren Buffett calls Charlie Munger as the smartest man he knows. In 1995, Charlie Munger gave a speech at Harvard…
Charlie Munger missed century just by 33 days but his wisdom lives many centuries :)