Lessons from Charlie Munger

I came across a few Charlie Munger-related resources. Even though he is 96, Charlie is still sharp. He is someone whose straightforward wisdom I admire a lot. There are a lot of people out there who strive to make simple points more complicated (think a narcissist like Taleb), but Charlie is somebody who can convey insightful lessons in a layman’s terms and a daily language. Another reason why I admire Charlie is that he doesn’t strive to show off his wealth. He doesn’t make headlines for being on a yacht or buying 20 Ferraris. If you are not familiar with Charlie yet, I highly recommend you read about him. He is someone admired globally, even by famous and rich folks.

“To get what you want, you have to deserve what you want. The world does not reward a bunch of undeserving people.”

“I think that realistic is probably a better word. The truth of the matter is that our abilities are not so high. And part of the reason for the successes we have had is I think we understand our limitations better than others. But I don’t that humility…”

“I have this friend who is really not very smart at all. He makes everybody explain things until he understands it…But he does have incredible patience. He doesn’t do anything unless he understands it. And he’s perfectly willing to have 5 years go by between deals. Meanwhile, you’d be surprised how rich how dumb man has become.”

So you can be pretty modest if you understand your own limitations. It’s better by far to be with a guy whose IQ is 130 who thinks it’s 128 than with a guy whose IQ is 190 who thinks it’s 250. The second guy is going to get into terrible trouble.

Operating within what’s prudent with your given hand and your given ability is just a financial knack. But I don’t call it humility. I call that enlightened greed.

Source: Twitter
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Source: Twitter

Move only when you have an advantage. It’s very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor. We just keep our heads down and handle the headwinds and tailwinds as best we can and take the result after a period of years

Source: Twitter

Tren compiled a ridiculous list of Charlie’s quotes over the years here

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