https://www.europesays.com/people/252924/ Warren Buffett Issued a Stark Warning About His Favorite Stock 11 Years Ago. He and His Successor, Greg Abel, Then Proceeded to Pile $82 Billion Into It. #BerkshireHathaway #CharlieMunger #GregAbel #HowardBuffett #WarrenBuffett
#charlie-munger — Public Fediverse posts
Live and recent posts from across the Fediverse tagged #charlie-munger, aggregated by home.social.
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Book Review: The Warren Buffett Way by Robert G. Hagstrom
Most books about Warren Buffett are either hero worship or impenetrable theory. The Warren Buffett Way is neither. Robert G. Hagstrom, who has been writing about Buffett’s investing since 1984, set out to do something harder: take apart Buffett’s actual investment decisions and show the method behind them. The result is the clearest breakdown ever written of how Buffett thinks about buying a business.
Book Summary
The Warren Buffett Way studies Buffett’s investments at Berkshire Hathaway and distills them into four groups of tenets: business tenets, management tenets, financial tenets, and value tenets. Instead of vague praise for Buffett’s genius, Hagstrom walks through real purchases, Coca-Cola, The Washington Post, GEICO, and others, and shows which tenets each one satisfied. The structure makes the book unusually actionable: you finish with a checklist you can actually apply to your own stock research.
The business tenets cover the kind of company Buffett wants: simple and understandable businesses with consistent operating history and favorable long-term prospects. The management tenets cover the people: rational, candid, owner-oriented managers who resist the urge to expand for empire’s sake. The financial tenets cover the numbers: high return on equity, strong owner earnings, low debt, and the discipline to retain earnings only when they can be reinvested at high rates. And the value tenets cover the price: determine the business’s intrinsic value, then buy only at a significant discount.
Two ideas do the most work in the book. The first is the economic moat, Buffett’s term for a durable competitive advantage, which Hagstrom frames as the “consumer monopoly”: a business customers come back to because of brand, habit, or switching costs rather than the lowest price. The second is owner orientation, the insistence that the right question is always what an intelligent owner would do with the business, not what the stock price will do next quarter.
Buy The Warren Buffett Way on Amazon
Who is Robert G. Hagstrom?
Robert G. Hagstrom is an investment writer and portfolio manager who has been studying and writing about Warren Buffett‘s methods since 1984, longer than almost anyone outside Berkshire Hathaway itself. He has written several books on Buffett and value investing, and his work is known for being analytical rather than anecdotal: he wants the framework, not the folklore. That sensibility is exactly what makes The Warren Buffett Way different from the dozens of Buffett books that followed it.
Lessons From The Warren Buffett Way
The central lesson of The Warren Buffett Way is that Buffett’s edge is not stock picking, it’s business analysis. He doesn’t trade stocks; he buys pieces of businesses he’d be happy to own outright. Every tenet in the book is a question about the business itself: Is it understandable? Is management owner-oriented? Do the economics improve over time? The stock certificate is incidental.
Second, acquire businesses at sensible prices and then do nothing. The value tenets insist on a margin of safety, paying well below intrinsic value, but Hagstrom emphasizes that Buffett’s holding period is the real multiplier. Coca-Cola and GEICO compounded for decades because Buffett sat still while the moats did the work. Patience isn’t a personality trait in this framework; it’s the strategy.
Third, temperament beats intellect. Hagstrom is blunt that the tenets are simple enough for anyone to learn, and that most investors fail them anyway because fear and greed override the checklist. Charlie Munger, Buffett’s partner and the book’s recurring second voice, supplies much of the psychological steel here: invert the problem, avoid stupidity, and let a few great decisions carry a lifetime.
Fourth, stay inside your circle of competence. The business tenets start with “simple and understandable” for a reason: Buffett refuses to buy what he can’t explain. Hagstrom shows this isn’t humility theater; it’s risk control. Every investment outside your understanding is a guess wearing a spreadsheet.
Fifth, price discipline is non-negotiable. A wonderful business at a terrible price is a terrible investment. The book’s case studies repeatedly show Buffett walking away, or waiting years, rather than overpay. The margin of safety isn’t just downside protection; it’s what makes the future returns possible at all.
Buy The Warren Buffett Way on Amazon
Criticisms of the Book
The fairest criticism of The Warren Buffett Way is that it was written before Berkshire’s biggest chapter. The framework describes the Buffett of the 1980s and 1990s, buying wonderful businesses at fair prices. It doesn’t cover the later era of elephant-sized acquisitions, the Apple position, or the airline forays that broke some of the book’s own tenets. A new reader should know they’re getting early-to-mid-career Buffett.
A deeper criticism is the one that haunts all Buffett books: the method looks replicable on paper, but Buffett’s advantages, permanent capital, deal flow, reputation, the ability to buy whole companies, are not. The tenets are genuinely useful for picking stocks, but expecting Buffett-like results from them confuses the framework with the franchise.
Finally, the book is drier than its competitors. Hagstrom is an analyst, not a storyteller, and the tenet-by-tenet structure can read like a textbook in stretches. Readers who want narrative color about Buffett’s life will find more of it in the biographies. This book is for people who want the operating manual.
Who is This Book For?
The Warren Buffett Way is for the investor who wants to understand what value investing actually requires, in concrete terms, rather than slogans. It’s ideal as a first serious Buffett book, especially before the biographies, because it gives you the lens through which everything else about Buffett makes sense. It pairs naturally with the site’s broader Warren Buffett coverage, including his author profile at Warren Buffett. It is not for traders, who will find no timing systems here, or for readers who want Buffett the personality rather than Buffett the analyst.
Final Thoughts
Decades after its first edition, The Warren Buffett Way remains the single best explanation of how Buffett actually invests: the tenets, the moats, the owner orientation, the price discipline. It’s less entertaining than the biographies and less complete than a study of his full career, but nothing else distills the method this cleanly. If you’re serious about value investing, this is the book that turns admiration of Buffett into something you can practice.
Buy The Warren Buffett Way on Amazon
#Books #CharlieMunger #Investing #RobertGHagstrom #ValueInvesting #WarrenBuffett -
https://www.europesays.com/people/251018/ Warren Buffett says America ‘doesn’t reward’ teachers, nurses like it does investors. How to get your first $1M anyway #BerkshireHathaway #CharlieMunger #Investing #JeffBezos #MarketSystem #WarrenBuffett
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https://www.europesays.com/people/244227/ Berkshire Hathaway (BRK.B) New CEO Greg Abel Wins Charlie Munger Backing #BerkshireHathaway #CapitalAllocation #CharlieMunger #GregAbel #WarrenBuffett
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https://www.europesays.com/people/240216/ Charlie Munger Once Called Greg Abel a ‘Tremendous Learning Machine’ Just as Good as Warren Buffett: Here’s the Quality That Left Him Impressed #Berkshire #BerkshireHathaway #BerkshireHathawayEnergy #CharlieMunger #GregAbel #KentSievers #LearningAbility #WarrenBuffett
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https://www.europesays.com/people/236923/ Warren Buffett’s rules for investors starting with $10,000 #AnnualShareholderMeeting #BerkshireHathaway #BuildingWealth #CharlieMunger #WarrenBuffett
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https://www.europesays.com/people/235873/ Warren Buffett Steps Down as Chairman of Berkshire Hathaway. 3 Predictions for What Comes Next Under CEO Greg Abel. #Berkshire #BerkshireHathaway #BerkshireHathawayEnergy #CharlieMunger #GregAbel #HowardGrahamBuffett #WarrenBuffett
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Book Review: Richer, Wiser, Happier by William Green
Most investing books teach you a system. William Green’s Richer, Wiser, Happier does something rarer: it asks what the best investors have figured out about living well, and whether the two are even separable. Green, a journalist who’s spent 25 years interviewing legends like Charlie Munger, Howard Marks, and Mohnish Pabrai, turns those conversations into a book that’s as much about temperament as technique.
Buy Richer, Wiser, Happier on Amazon
Brief Book Summary
What the book is
The structure is simple: chapters organized around the investors and the ideas they embody. Mohnish Pabrai on cloning: the shameless, brilliant art of copying what already works. Howard Marks on second-level thinking and the discipline of knowing where you stand in a cycle. Sir John Templeton on buying at the point of maximum pessimism. Charlie Munger on rationality as a moral duty. Green doesn’t just summarize their strategies; he shows how they think, how they handle loss, and what they’d tell you about a life well spent.
What it’s not
This isn’t a how-to manual. You won’t find stock screens, valuation formulas, or a portfolio to copy. If you want mechanics, look elsewhere. And at 300+ pages of interviews, some chapters overlap; the same lessons echo across investors, which is either reinforcing or repetitive depending on your patience.
Who is William Green?
William Green is a financial journalist who spent 25 years interviewing the world’s best investors for publications like Fortune and Money. Richer, Wiser, Happier distills those conversations with Charlie Munger, Howard Marks, Mohnish Pabrai, Sir John Templeton, and others into a book about temperament as much as technique. He’s not a fund manager or guru; he’s a writer who asked smart questions and listened carefully, which is why the book reads like wisdom rather than a sales pitch.
Buy Richer, Wiser, Happier on Amazon
What are some lessons readers can take away from the book?
The ideas that stick
Three themes kept resurfacing for me. First, temperament beats intellect: every investor in the book says some version of this, and Munger’s line that a lot of people with high IQs are terrible investors because they have terrible temperaments is the thesis in miniature. Second, simplicity wins: the best investors do fewer things, say no constantly, and let compounding do the work. Third, the game is avoiding stupidity, not seeking brilliance: don’t lose money, don’t do anything you don’t understand, and let time be your edge.
Inversion: the mental model that matters most
Munger’s signature contribution to Richer, Wiser, Happier is inversion: instead of asking how to succeed, ask how to fail, then avoid those things. Don’t lose money. Don’t invest in what you don’t understand. Don’t let ego drive decisions. It’s a profoundly frugal way to think. Wealth comes less from brilliant moves than from the steady avoidance of dumb ones. For a regular investor, inversion translates to a short checklist: automate savings, buy broad index funds, keep fees low, and do nothing dramatic when markets wobble. Boring, effective, and the opposite of what Wall Street wants you to do.
The case for doing nothing
The book’s quiet radicalism is its defense of inaction. The best investors in Green’s pages aren’t trading furiously. They’re waiting, reading, and saying no to almost everything. That maps directly onto the frugal investor’s playbook: set up automatic contributions to an S&P 500 index fund, then get on with your life. Compounding does the heavy lifting, but only if you don’t interrupt it. The hard part, as the book keeps showing, isn’t the strategy. It’s the temperament to stick with a simple plan for decades while everyone around you chases the next hot thing.
What are some criticisms of the book?
Where the book falls short
Two honest caveats. First, survivorship bias. Green interviews winners, and winners’ stories always sound like wisdom in hindsight. The investors who followed similar principles and failed don’t get chapters. Second, the book is long on inspiration and short on implementation. You’ll finish motivated but without a concrete next step, which is why pairing it with a simple system (a budget, automatic investing, an emergency fund) matters. None of this diminishes the book. But read it for the mindset shift, not a manual.
Should readers buy the book or not?
Who should read it
Anyone who invests (or wants to) and suspects the hard part isn’t the math, it’s the mindset. It’s also a genuinely enjoyable read, which is rare for the genre. Green’s a real writer, not a guru with a ghostwriter.
Buy it if you invest and want to improve your temperament, not just your technique. It’s especially valuable for index fund investors who need the patience to stick with a simple plan through market cycles. Skip it if you want stock picks, valuation formulas, or a step-by-step system; this is about mindset, not mechanics. At around $20, it’s cheaper than a single emotional trading mistake.
Final thoughts.
Richer, Wiser, Happier won’t make you rich by itself. But it might make you wiser about why you invest, happier with a simpler approach, and richer over time by helping you avoid the dumb mistakes that derail most investors. For a frugal investor building wealth slowly, that’s a worthwhile trade.
Buy Richer, Wiser, Happier on Amazon
#BookReviews #Books #CharlieMunger #HowardMarks #Investing #WilliamGreen -
https://www.europesays.com/people/233798/ Metro reacts to Warren Buffett stepping down as Berkshire Hathaway chairman #AnthonyHendrickson #BerkshireHathaway #Brazil #CharlieMunger #CollegeOfBusiness #CreightonUniversity #Germany #Gorat'sSteakHouse #Japan #JoshSaligheh #Nebraska #NewYork #omaha #stockholders #WarrenBuffett
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https://www.europesays.com/ee/278922/ Investeerimisguru Warren Buffett lahkub koheselt Berkshire Hathaway nõukogu juhi kohalt #BerkshireHathaway #BreakingNews #BreakingNews #CharlieMunger #EE #Eesti #EestiKeel #Estonia #Estonian #FeaturedNews #FeaturedNews #Headlines #heategevus #HowardGBuffett #investeerimiskultuur #LatestNews #LatestNews #News #PopulaarseimadLood #TopStories #TopStories #ÜldisedUudised #Uudised #ViimasedUudised #WarrenBuffett
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https://www.europesays.com/people/212687/ Buffett’s Bear-Market Playbook: Keep Dry Powder Ready and Buy Only Durable Moats — BigGo Finance #Alphabet #AmericanAssociationOfIndividualInvestors #BerkshireHathaway #CharlieMunger #fortune #GregAbel #Nasdaq100 #NASDAQComposite #Su0026P500 #WarrenBuffett
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https://www.europesays.com/people/169460/ Exec Burnout and Overwork: How 10 Business Leaders Stave Off Burnout #AriannaHuffington #BusinessLeader #CEO #CharlieMunger #colleague #day #ExecBurnout #Family #hour #JeffBezos #job #sleep #StartupLife #ThriveGlobal #WarrenBuffett #workload
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https://www.europesays.com/people/147690/ Peter Thiel: The Only Path to Lasting Value Is Building a Creative Monopoly — BigGo Finance #Amazon #apple #CharlieMunger #Facebook #HowardHughes #Ikea #IngvarKamprad #MarkZuckerberg #MichaelSaylor #Paypal #PeterThiel #SteveJobs #StrategyInc #Yahoo #ZeroToOne
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https://www.europesays.com/people/137741/ Warren Buffett’s Berkshire Hathaway Has Held The Kraft Heinz Company (KHC) Since 2015 #Berkshire #CharlieMunger #KraftHeinzCompany #WarrenBuffett
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https://www.europesays.com/people/130507/ Stripe cofounder says Gen Z will need two college majors to compete thanks to AI #Advice #Anthropic #Automation #BerkshireHathaway #CareerAdvice #Careers #CharlieMunger #CollegesAndUniversities #Education #Employment #Executives #Founders #GenZ #JamieDimon #JobHunting #JobSeekers #Jobs #JPMorganChase #Skills #Stripe #tech #WarrenBuffett #YoungAdults #YoungWorkers
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https://www.europesays.com/people/129056/ Charlie Munger’s five powerful psychology lessons: These 5 Charlie Munger psychology lessons show why mindset matters more than intelligence, talent, or luck — lessons from Warren Buffett’s most trusted partner #CharlieMunger #CharlieMunger’sFivePowerfulPsychologyLessons #Clearly?oneOfMungerS #Intelligence?amongMungerS #munger #MungerS #WarrenBuffett
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Warren Buffett Called Elon Musk ‘Remarkable’ But Never Invested — The SpaceX CEO Made More In 24 Hours Than What Oracle Of Omaha Made In His Lifetime
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Elon…
#NewsBeep #News #US #USA #UnitedStates #UnitedStatesOfAmerica #Space #AnthonyPompliano #BerkshireHathaway #CharlieMunger #elonmusk #realestate #Science #spaceX #WarrenBuffett
https://www.newsbeep.com/us/711198/ -
https://www.europesays.com/people/118868/ Warren Buffett Called Elon Musk ‘Remarkable’ But Never Invested — The SpaceX CEO Made More In 24 Hours Than What Oracle Of Omaha Made In His Lifetime #AnthonyPompliano #BerkshireHathaway #CharlieMunger #ElonMusk #RealEstate #SpaceX #WarrenBuffett
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Warren Buffett Called Elon Musk ‘Remarkable’ But Never Invested — The SpaceX CEO Made More In 24 Hours Than What Oracle Of Omaha Made In His Lifetime
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Elon…
#NewsBeep #News #Space #AnthonyPompliano #BerkshireHathaway #CA #Canada #CharlieMunger #ElonMusk #realestate #Science #SpaceX #WarrenBuffett
https://www.newsbeep.com/ca/744326/ -
https://www.europesays.com/ie/541026/ Warren Buffett Called Elon Musk ‘Remarkable’ But Never Invested — The SpaceX CEO Made More In 24 Hours Than What Oracle Of Omaha Made In His Lifetime #AnthonyPompliano #BerkshireHathaway #CharlieMunger #Éire #ElonMusk #IE #Ireland #RealEstate #Science #Space #SpaceX #WarrenBuffett
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https://www.europesays.com/uk/1033820/ Warren Buffett Called Elon Musk ‘Remarkable’ But Never Invested — The SpaceX CEO Made More In 24 Hours Than What Oracle Of Omaha Made In His Lifetime #AnthonyPompliano #BerkshireHathaway #CharlieMunger #ElonMusk #RealEstate #Science #Space #SpaceX #UK #UnitedKingdom #WarrenBuffett
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https://www.europesays.com/people/113527/ Charlie Munger: Finfluencers ‘mislead you on purpose’ — This is how the late billionaire recommends you build wealth #BerkshireHathaway #BuffettAndMunger #CharlieMunger #DaveRamsey #FinancialAdvice #InvestingStrategies #InvestmentStrategy #RealEstate #WarrenBuffett
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https://www.europesays.com/people/104632/ Billionaire Charlie Munger Was Asked Why Warren Buffett Is ‘So Much Richer’ Despite Being Partners — ‘Why Was Albert Einstein Poorer Than I Was?’ #AlbertEinstein #BerkshireHathaway #CharlieMunger #WarrenBuffett
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https://www.europesays.com/people/94933/ Quote of the day by Charlie Munger: ‘The safest way to get what you want is to try to deserve what you want’; Warren Buffett’s ex-associate shares his life lesson on how he succeeded #BerkshireHathaway #CharlieMunger #LongTermSuccess #SuccessPhilosophy #TrustAndRespect #WarrenBuffett
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https://www.europesays.com/people/87074/ Berkshire Hathaway Buys Macy’s After 60 Years Away From Department Stores. M Stock Offers Real Estate, Dividends, and an Interesting Twist. #BerkshireHathaway #CharlieMunger #DepartmentStore #HochschildKohn #macy’s #Macy’sStock #WarrenBuffett
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When it comes to tasks, the question isn’t “How do I get more done?” but “What distracts me?” Turns out, for me, it’s that one open browser tab I swear I’ll close later.
Read more 👉 https://lttr.ai/Arflf
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https://www.europesays.com/people/65180/ Billionaire Charlie Munger, 99, Refused To Use A Cane After Seeing Friends Fall — ‘I Never Fell Once…’ His Advice? ‘Be A Little More Cautious’ #BerkshireHathaway #CharlieMunger #investments #investors #RetirementIncome #WarrenBuffett
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https://www.europesays.com/people/65006/ The Argument for Doing Nothing With Your Portfolio Right Now #CharlieMunger #MarketDynamics #Portfolio #WarrenBuffett
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https://www.europesays.com/people/64949/ The Argument for Doing Nothing With Your Portfolio Right Now #CharlieMunger #MarketDynamics #Portfolio #WarrenBuffett
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It's not greed that drives the world, but envy. - Charlie Munger
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I’ve always been a fan of breaking things down to figure out how they work—sometimes that means disassembling old electronics, other times it means turning a question on its head.
Read more 👉 https://lttr.ai/AoXu5
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Investir dans la connaissance est le secret de l'intérêt composé. 🧠
Podcast AI synthétise le meilleur du business et du mindset. Grâce à l'IA, maîtrisez les modèles mentaux de Charlie Munger pour optimiser vos décisions et vos performances au quotidien. 📈
Gagnez du temps, captez l’essentiel et passez à l’action dès maintenant. 🚀
Écoutez ici :
https://podcastaibynikario.substack.com/?utm_source=mastodon -
Comment designer des tableaux clairs et efficaces ?
Quelle forme de présentation de données choisir entre tableaux et graphiques, des bonnes pratiques de représentation de l'information en tableau et leur traduction en développement web.
https://www.teotimepacreau.fr/blog/designer-des-tableaux-clairs-et-efficaces/
#WebDev #UX #UI #MatthewButterick #CharlieMunger #Tufte #EdwardTufte -
#OnThisDay in 2023, #CharlieMunger, American investor (vice chairman of Berkshire Hathaway), died at 99.
#RIP 🕊️ -
This flipped way of thinking has helped me untangle everything from tricky team dynamics to gnarly security architecture.
Read more 👉 https://lttr.ai/AlWoz
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“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 very intelligent.” — Charlie Munger
Read more 👉 https://lttr.ai/AiAOx
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“Show me the incentives and I will show you the outcome” → a great quote by Charlie Munger, and something we should all think and talk about more in our businesses, governments and non-profits, particularly with regard to how we reward our leaders
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It’s how I approach resource planning: “What failure would hurt us the most?” Not “Where should we invest?” The pain points reveal your priorities.
Read more 👉 https://lttr.ai/AfrIu
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Don’t ask “How do I save more?” Ask “What makes me blow cash unnecessarily?” That late-night Amazon scroll?
Read more 👉 https://lttr.ai/AfIvO
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Don’t chase the best workout plan—just ask “Why do I skip the gym?” Too far away, crappy equipment, bad timing.
Read more 👉 https://lttr.ai/AfB9V
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Even in incident response, I run pre-mortems: “Let’s assume this defense fails—what went wrong?” It’s bleak, but effective.
Read more 👉 https://lttr.ai/Ae7tZ
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#CompoundYourWay #PassiveWins #WarrenBuffettStyle #SlowMoney #ModernWealthPlaybook #InvestingAdvice #TheHardWay #GenerationalWealth #IndexOverInsta #10YearGame #WarrenBuffett #CharlieMunger #BerkshireHathaway #BuffettWisdom #MungerMindset #ValueInvesting #CompoundLikeBuffett #BuffettStyle #MungerMentalModels #InvestingLegends #BerkshireEnergy #BuffettQuotes #MungerQuotes #LongTermThinking #BoringIsProfitable #SmartMoneyMoves #StockMarketWisdom #BuffettPlaybook #DailyCompounding #BuyAndHold
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Inversion Thinking: Solving Backward to Live Forward
▸ https://lttr.ai/Ae4us -
The Oracle of Omaha always sought to do right by shareholders, and he wasn’t under the delusion that he was the only man for the job. https://www.japantimes.co.jp/commentary/2025/05/04/world/warren-buffett-caps-his-career/?utm_medium=Social&utm_source=mastodon #commentary #worldnews #warrenbuffett #berkshirehathaway #charliemunger #stocks
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now that crypto bros have bought the american government lock, stock, and barrel it's worth revisiting #CharlieMunger (#WarrenBuffett's partner) ranting about how "crypto shit" is "evil, stupid, immoral" and "an absolute horror" a few years ago on CNBC (and refusing to not say the word "shit" - RIP king)
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Who was Charlie Munger?
Born in 1924, Charlie Munger was an American businessman, investor, and philanthropist. He graduated from Harvard Law School and served in the U.S. Army Air Corps during World War II. After the war, Munger began his career as a real estate attorney, but soon transitioned to investing, where he made his fortune through a series of stellar investments.
The Partnership with Warren Buffett
Munger met Warren Buffett in 1959 and became vice chairman of Berkshire Hathaway in 1978. Together, they formed one of the most successful investment duos in history, with Munger serving as a sounding board for Buffett’s ideas and providing valuable insights of his own.
Buy Poor Charlie’s Almanack on Amazon
Munger’s Investment Philosophy
It takes character to sit with all that cash and to do nothing.
I didn’t get top where I am by going after mediocre opportunities. – Charlie MungerCharlie Munger’s investment approach is centered around several key principles:
- Long-term thinking: Munger emphasized the importance of taking a long-term view when investing, rather than focusing on short-term gains.
- Quality over quantity: He prioritized investing in high-quality businesses with strong fundamentals, rather than trying to diversify across a large number of lower-quality investments.
- Mr. Market: Munger, like Buffett, viewed the stock market as a moody business partner, known as “Mr. Market.” He advocated for taking advantage of Mr. Market’s irrational behavior to buy quality companies at discounted prices.
- Circle of Competence: Munger often stressed the importance of staying within one’s “circle of competence,” or area of expertise, when investing. This means avoiding investments in areas you don’t fully understand.
The 1959 Meeting That Started Everything
The most important dinner in investing history happened in Omaha in 1959, when a local doctor introduced Buffett to Munger, then a Los Angeles lawyer. They talked for hours and kept talking for the next 64 years. Buffett later said Munger talked him out of buying mediocre companies at bargain prices and into the idea that made Berkshire rich: buy wonderful businesses at fair prices and hold them. The partnership was never formal, which is part of the point. No contract produced one of the great fortunes in history. A shared way of thinking did.
Two Rules That Built the Fortune
Munger’s advice usually fit on an index card, and two ideas did most of the work. The first was inversion: instead of asking how to get rich, ask what guarantees ruin and avoid it. “All I want to know is where I’m going to die, so I never go there,” he liked to say. In investing that means avoiding debt, avoiding businesses you do not understand, and avoiding the need to be clever on a deadline.
The second was the latticework of mental models, the argument of his book Poor Charlie’s Almanack (2005). Munger believed most people fail not from a lack of facts but from having only one lens, usually their own profession’s. An investor who also thinks like a psychologist, a mathematician, and an engineer sees risks and opportunities the single-lens thinker misses. You do not need to master every discipline. You need enough of the big ideas from each to keep from fooling yourself, which Munger considered the investor’s full-time job.
Lessons from Charlie Munger
https://youtu.be/TUA7PS5-y5o?si=PnHyOL-eQvhboNHr
So, what can we learn from Charlie Munger’s wisdom and experience? A lot.
- Be patient: Investing is a long-term game. Avoid getting caught up in short-term market fluctuations and focus on building wealth over time.
- Focus on quality: Prioritize investing in high-quality businesses with strong fundamentals, rather than trying to chase quick profits.
- Stay informed, but avoid noise: Stay up-to-date on market news, but avoid getting caught up in sensationalized headlines or short-term market volatility.
- Cultivate a growth mindset: Continuously educate yourself and expand your circle of competence to make informed investment decisions.
- Avoid debt: Munger was known for his aversion to debt, emphasizing the importance of living below your means and avoiding high-interest debt.
Charlie Munger’s wisdom offers valuable lessons for investors and individuals seeking to build wealth and achieve financial freedom. By adopting a long-term perspective, prioritizing quality investments, and staying informed, we can all benefit from Munger’s timeless insights. As we navigate the complexities of personal finance, let us draw inspiration from Munger’s remarkable life and investment philosophy.
Buy Poor Charlie’s Almanack on Amazon
#BerkshireHathaway #Biography #Books #Business #CharlieMunger #Investing #ValueInvesting #WarrenBuffett -
What is the secret of success? One word answer: “rational”.
— Charlie Munger
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🧵12/13 While Munger recognizes the value of diversification, he warns against overdoing it. By focusing on a few well-chosen investments, investors can avoid the pitfalls of "diworsification" and aim for meaningful, long-term success. #InvestmentSuccess #CharlieMunger
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🧵1/13 The Problem with Excessive Diversification: In the world of investing, diversification is often touted as the key to success. But Charlie Munger, the vice chairman of Berkshire Hathaway, challenges this widely accepted notion. Let's dive into why. #Investing #CharlieMunger
Post related to : https://mindly.social/@MusaMansa11/112223211889833302
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#economics #Humor #Investing #Crypto #CharlieMunger #WarrenBuffet
Charlie Munger could not say it better!!!
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💡 #CharlieMunger on The Great Tragedy of Modern Life
ℹ #CharlieMunger was asked why is it that #BerkshireHathaway's organizational principles as a holding company have not been copied more by others given its incredible success and track record?
He talks about why #bureaucracy breeds failure ⤵
📝 A remarkable insight into why #bureaucracy is so bad for so many organisations
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> 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 very intelligent.
— Charlie Munger
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A Suspicious 'Munger' Coin Soars Then Crashes After Billionaire Charlie Munger's Death - A memecoin that was minted 15 minutes after Charlie Munger's death soared by more than 31... - https://www.coindesk.com/markets/2023/11/30/a-suspicious-munger-coin-soars-then-crashes-after-billionaire-charlie-mungers-death/?utm_medium=referral&utm_source=rss&utm_campaign=headlines #charliemunger #memecoin #markets #news
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#CharlieMunger
#WarrenBuffett's #trustedrighthandman
Passed away this week aged 99,3 #basicrules for #careerhappiness
Source : #BusinessInsider
https://www.businessinsider.com/charlie-munger-three-rules-for-career-happiness-2023-11?IR=T -
Though Charlie's life has passed
He left an legacy of love
Forever in China#charliemunger #china #legacy #haiku #poetry
https://businessinsider.com/in-death-charlie-munger-is-loved-by-china-2023-11
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Today's episode of popular Wiki of the Day is on the article Charlie Munger.
Listen to the new episode here: https://wikioftheday.com/wotdep.php?pod=popular&epnum=2402See our archives or subscribe here: https://wikioftheday.com
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Abel takes the reins
As Charlie Munger's reign ends
A new chapter begins#berkshirehathaway #charliemunger #gregabel #haiku #poetry
http://www.businessinsider.com/charlie-munger-berkshire-hathaway-greg-abel-warren-buffett-2023-11
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⚫ Legendary businessman, investor and philanthropist, #CharlieMunger, who helped #WarrenBuffett build Berkshire Hathaway into an investment powerhouse, has died at a #California hospital. He was 99.
#BerkshireHathaway said in a statement that Munger’s family told the company that he died Tuesday morning at the hospital just over a month before his 100th birthday.
https://abcnews.go.com/US/wireStory/charlie-munger-warren-buffets-sidekick-berkshire-hathaway-dies-105223575 #Financial #News