A thread with my highlights from 'Poor Charlie's Almanack' by Charlie Munger.
1/ Intellectual humility is the dawning of wisdom. Identify and reconcile disconfirming evidence. Resist the craving for false precision and certainties.
Above all, never fool yourself, and remember that you are the easiest
person to fool.
Above all, never fool yourself, and remember that you are the easiest
person to fool.
2/ “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.”
3/ 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.
4/ Heavy ideology is one of the most extreme distorters of human cognition. Be open to change and new ideas.
5/ It’s remarkable how much long-term advantage people have by trying to be consistently not stupid, instead of trying to be very intelligent. Knowing what you don’t know is more useful than being brilliant.
6/There is no better teacher than history in determining the future...There are answers worth billions of dollars in a $30 history book.
7/ Many challenging problems are best solved when inverted. Rather than find X, turn it backwards and find non-X. Then avoid it.
8/ “What are the secrets of success? - one word answer: "rational.”
9/ When proper circumstances present themselves,
act with decisiveness and conviction. Opportunity meeting the prepared mind; that's the game.
act with decisiveness and conviction. Opportunity meeting the prepared mind; that's the game.
10/ In investing, enjoy the process along with the proceeds; because the process is where you live.
11/ Independence is the end that wealth serves; not the other way around.
12/ If you always tell people why, they'll understand it better; they'll consider it more important, and they'll be more likely to comply.
13/ The best armour of old age is a well spent life preceding it.
14/ One of the key elements to successful investing is having the right temperament - most people are too fretful; they worry too much. Success means being very patient, but aggressive when it's time.
15/ Live with change and accept unremovable complexity. Recognise and adapt to the true nature of the world around you; don't expect it to adapt to you.
