Source: Smart Investors
The recent market has been agonizing for the vast majority of investors.
During such trying times, one can't help but recall Charlie Munger's words: 'Our generation, those of us who practice value investing, which one of us hasn’t endured hardships? Keep going; you don’t even need to be exceptionally smart. He made this statement at the 2017 Daily Journal annual meeting. Addressing the audience, he said, 'Your generation faces greater challenges in investing than we did back then. Let it be difficult; if it weren’t, it wouldn’t be interesting. Even though it’s tougher now, don’t lose heart.'
Munger has long been known for his sharp tongue. Using the simplest words to reveal the most profound truths is one of the reasons many admire him. Some have remarked, 'Buffett is hard to emulate, but Munger is even harder.' Unlike Buffett, Munger delves into more diverse fields and discusses broader life philosophies.
Intelligent investors have meticulously read and compiled countless classic quotes from Munger, and today we share 50 of them. Perhaps Munger is difficult to emulate, but these golden words always offer new insights with each reading.
Waiting will not make a mistake better.
1. There are two kinds of mistakes: first, doing nothing; second, buying only a small amount when you should have bought in bulk.
2. If it is evidently a mistake, quickly correct it. Waiting will not improve the situation.
3. It is best to learn profound lessons from others’ misfortunes rather than your own.
4. If you wish to enhance your cognitive abilities, forgetting your own mistakes is itself a terrible error.
5. Talk more about your failures and boast less about your successes—it will do you good.
Acknowledging that you do not understand something signifies the dawn of wisdom.
Even intelligent individuals are not immune to the disasters brought by overconfidence. Believing they possess greater abilities, they often exhaust themselves on more challenging paths.
Do not deceive yourself, and remember, you are the easiest person for yourself to fool.
Acknowledging that you do not understand something signifies the dawn of wisdom.
You don't need to be exceptionally brilliant; it's enough to remain slightly smarter than others for a very, very long time.
We never attempt to become exceedingly smart people but instead continuously strive not to become foolish. Over time, this approach grants us a significant advantage.
If you have to ask whether you’ve exceeded your circle of competence, it means you are already outside of it.
If you play games at which others excel and you are clueless, you are bound to fail miserably.
At Berkshire, Buffett and I do not engage in tasks that others can perform better. If you do not know where your strengths lie, you cannot claim to truly possess strength.
If you cannot persuade your opponent better than they can, it indicates that your understanding is insufficient.
14, If you are questioning whether you have exceeded your circle of competence, it means you are already outside of it.
Continuously challenge your 'most cherished beliefs'
15, Continuously challenge and proactively revise your 'most cherished beliefs'.
16, One reason I am more successful than most is that I excel at dismantling my favorite ideas.
17, Face reality, even if you don’t like it—especially when you don’t like it.
18, Seeking evidence in doubtful areas is an effective way to eliminate ignorance. However, when people express their opinions, they already believe in their own convictions. I have always known this. Therefore, I do not speak lightly.
I owe my success to not chasing mediocre opportunities.
19, It takes character to sit there with cash and do nothing. My success owes much to not chasing mediocre opportunities.
20, If you are not well-prepared in advance, you won’t have the courage to seize the opportunity when it arises.
21, Anytime you sit around waiting for opportunities to come to you, you are placing yourself in a dangerous situation.
22. If something is not worth doing, then no matter how well you do it, it is of no use.
23. Our success does not stem from our ability to solve difficult problems, but rather from our ability to avoid them.
24. Making the most of a few well-identified opportunities is far better than pretending to know everything. Starting with feasible tasks significantly increases the likelihood of success.
25. We are constantly on the lookout for companies worth acquiring, and we do not deal with unsolicited sales pitches. If you simply sit and wait for deals to come to you, your position becomes highly precarious.
Proper trust can only exist among a group of reliable individuals.
26. Avoiding dealings with immoral people can spare you from great misfortune, while associating with virtuous individuals can bring immense happiness.
27. Proper trust can only exist among a group of reliable individuals.
28. The most reliable way to obtain what you desire is to make yourself worthy of it.
29. Do not wrestle with a pig, for you will get dirty while the pig enjoys it.
Good morals and a solid reputation for integrity are priceless treasures.
At the age of 30, remember, reputation and integrity are your most valuable assets, and they can vanish in an instant.
If acting with honesty and integrity could lead to greater rewards, would it still deserve praise? What truly deserves admiration are those who, despite enduring hardship, continue to act with dignity and honesty.
Strengthening rationality is not something you can choose to do or not; it is a moral obligation that you need to fulfill as much as possible.
There is one statement that is always true: Rationality steers clear of those consumed by anger.
What is rationality? It means seeing the world as it truly is, rather than as you wish it to be. This is the most important principle.
We hope to leave the impression that we earn money cleanly and do not squander it—this is the right path.
Constant complaints and blaming fate and others are major taboos in life.
Envy, resentment, hatred, and self-pity are all catastrophic mental states. Excessive self-pity can drive a person to near paranoia, which is one of the hardest conditions to reverse.
Once you have found an effective way to make money, it seems irrational to me to obsess over others making money faster than you.
Do not dwell excessively on things you cannot change. Constant complaints and blaming fate and others are major taboos in life.
At 39, do not envy others' success; just follow the rules and work diligently. If Berkshire had been exceptionally clever, it might not have achieved today’s level of success.
Simplify your thoughts and act with seriousness.
At 40, people often underestimate the importance of simple yet profound truths.
At 41, old principles are reliable. Traditional virtues bring lifelong benefits.
At 42, simplify your thoughts and act with seriousness.
At 43, my goal is to pursue common sense that most people lack.
At 44, the intellectual giants I encountered were in books, not in school.
Life is not merely about accumulating wealth shrewdly.
At 45, my approach to life is to recognize foolishness and keep a respectful distance.
At 46, one of life’s most fundamental truths is: when you do something right, repeat it.
47, strive to be a little smarter each night when you go to bed than when you woke up. Diligently and excellently complete your tasks.
48, if the only success in life is getting rich by buying stocks, then that is a failed life. Life is not just about cleverly accumulating wealth.
49, we value investors, which one of us has not endured and persevered? Keep going, and you don’t even need to be exceptionally smart. Those of us from this generation who have persisted have all become very successful.
50, a friend of mine said that the best thing when you are old is waking up every morning without any new pain.
Editor /rice