Remembering Charlie Munger: A Legacy in Quotes
The world recently bid farewell to Charlie Munger, the vice-chairman of Berkshire Hathaway and a renowned figure in the investing world. Charlie was born in 1924 and died in 2023 at age 99.
Munger, known for his wisdom and sharp wit, leaves behind a treasure trove of wisdom.
Here are a few memorable quotes that encapsulate his philosophy on life, investing, and business.
On Patience in Investing:
"The big money is not in the buying and selling ... but in the waiting".
On Simplicity over Intelligence:
"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".
On Knowledge and Brilliance:
"Knowing what you don't know is more useful than being brilliant".
On the Importance of Reading:
"In my whole life, I have known no wise people who didn't read all the time - none ... ZERO".
On Victim Mentality:
"Whenever you think something or some person is ruining your life, it's you. A victimisation mentality is so debilitating".
On Opportunities:
"Opportunity comes to the prepared mind".
On Business Value:
"A great business at a fair price is superior to a fair business at a great price".
On Considering Opposing Views:
"I never allow myself to have an opinion on anything that I don't know the other side's argument better than they do".
On Waiting for the Right Opportunity:
"It takes character to sit there with all that cash and do nothing. I didn't get to where I am by going after mediocre opportunities".
On Active vs. Passive Investing:
"Investing is where you find a few great companies and then sit on your ass".
On Avoiding Overconfidence:
"I try to get rid of people who always confidently answer questions about which they don't have any real knowledge".
On Delayed Gratification in Investing:
"Great investing requires a lot of delayed gratification".
On Patience and Aggression:
"Most people are too fretful, they worry too much. Success means being very patient, but aggressive when it's time".
On the Role of Attention Span:
"I did not succeed in life by intelligence. I succeeded because I have a long attention span".
On Temperament Over IQ:
"A lot of people with high IQs are terrible investors because they've got terrible temperaments".
On Incentives and Outcomes:
"Show me the incentive and I will show you the outcome".
On Limiting Scope for Better Predictions:
"The game of investing is one of making better predictions about the future than other people. How are you going to do that? One way is to limit your tries to areas of competence".
On Learning from Others' Mistakes:
"The more hard lessons you can learn vicariously rather than through your own hard experience, the better".
Munger's had a unique perspective on life and investing, a blend of pragmatism, patience, and understanding of human nature. His focus was not just on making money, rather making wise decisions in all aspects of life.
Further reading: Check out the book ‘University of Berkshire Hathaway - 30 Years of Lessons Learned from Warren Buffett & Charlie Munger’
