Everyone of us would be knowing about Charlie Munger. But just in case anyone reading this article is not aware of Charlie Munger, let us just see a brief introduction of Charlie.
Charlie Munger was Berkshire Hathaway’s former vice-chairman and second-in-command to Warren Buffett. Serving as Buffett’s closest business associate and “right-hand man” for more than 40 years, Munger had a key role in transforming Berkshire Hathaway into a massive, diversified holding firm with a market valuation of more than $780 billion (market cap when Munger passed away in November 2023).
Munger was a major factor in Berkshire’s success since he and Buffett had a business relationship that was entirely focused on upholding the highest standards for moral business conduct in the industry.
Munger, an ardent reader and articulate speaker, popularized the notion of “elementary, worldly wisdom” in the business and finance sectors through numerous lectures and through his book ‘Poor Charlie’s Almanack’.
I recently came across a condensed version of his various quotes and speeches, which are ‘all-time valuable insights’. Hence thought of presenting these in this blog-post.
The below are some of the words of wisdom from Charlie Munger, that we can learn and try to adopt in our investing life, and in general, to our normal life outside investing as well:
- “Take a simple idea, and take it seriously.”
- “We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.”
- “Patience can be learned. Having a long attention span and the ability to concentrate on one thing for a long time is a huge advantage.”
- “Acquire worldly wisdom and adjust your behavior accordingly. If your new behavior gives you a little temporary unpopularity with your peer group…then to hell with them.”
- “People calculate too much and think too little. Be available almost every day to just sit and think. That is very uncommon in today’s business environment. You should read more and think more.”
- “A great company keeps working after you are not; a mediocre company won’t do that.”
- “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.”
- “There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous.”
- “Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day-if you live long enough-like most people, you will get out of life what you deserve.”
- “You can learn a lot from dead people. Read of the deceased you admire and detest.”
- “Don’t bail away in a sinking boat if you can swim to one that is seaworthy.”
- “You have to keep learning if you want to become a great investor. When the world changes, you must change. Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.”
- “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 when they got up and boy does that help, particularly when you have a long road ahead of you.”
- “I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.”
- “Remember that reputation and integrity are your most valuable assets and can be lost in a heartbeat.
- “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?”
- “The iron rule of nature is: you get what you reward for. If you want ants to come, you put sugar on the floor.”
- “In my whole life, I have known no wise people (over a board 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.”
