Charlie Munger died today, just a month away from his 100th birthday.
As Warren Buffett’s lifelong business partner, Charlie was instrumental in the growth of Berkshire Hathaway. Charlie Munger was more than just a successful businessman and investor; he was a philosopher. He has inspired many entrepreneurs with his outstanding intelligence and direct approach. To me, Charlie symbolizes wisdom and rationality.
His main ideas included:
Wisdom as Duty
“Wisdom acquisition is a moral duty. It’s not something you do just to advance in life.”
Practical Wisdom
“You don’t have to be brilliant, only a little bit wiser than the other guys, on average, for a long, long time.”
Integrity
“Always take the high road; it’s far less crowded.”
Independence
“Like Warren, I had a considerable passion to get rich, not because I wanted Ferraris—I wanted the independence. I desperately wanted it.”
Thinking
“We (Warren Buffett and I) both insist on a lot of time being available almost every day just to sit and think. That is very uncommon in American business. We read and think.”
Patience in Investing
“It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait.”
Deserving Success
“The best way to get what you want in life is to deserve what you want. How could it be otherwise?”
Hard Work
“Almost everybody that has an unusually good result has three things: They’re very intelligent, they worked very hard, and they were very lucky.”
Focus
“Take a simple idea and take it seriously.”
Learning Vicariously
“I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart…”
Importance of Reading
“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. You’d be amazed at how much Warren reads—and at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.” I am a biography nut myself. And I think when you’re trying to teach the great concepts that work, it helps to tie them into the lives and personalities of the people who developed them. I think you learn economics better if you make Adam Smith your friend. That sounds funny, making friends among the eminent dead, but if you go through life making friends with the eminent dead who had the right ideas, I think it will work better in life and work better in education. It’s way better than just being given the basic concepts.
It is impressive how almost all the founders and investors I admire from Silicon Valley admire Charlie Munger. The founders I have studied almost always talk about Charlie Munger. This, I believe, is because Charlie Munger’s teachings are ideal for founders. To be successful in their ventures, founders need to be learning machines, equipped with a broad range of skills that enable them to lead a company and comprehend various aspects like finance, engineering, marketing, sales, and management.
If you aspire to be more rational, wise, and a learning machine, I strongly recommend studying Charlie Munger’s book “Poor Charlie’s Almanack,” a compilation of his lectures.
Personally, Charlie has been a major influence on me, giving me the confidence to learn about whatever I need for my ventures and investments. His wisdom has made me a wiser and better person. “Poor Charlie’s Almanack” has been a recurring book on my nightstand for many years, because every once in a while I like to impregnate my subconscious mind with Charlie’s wisdom. He has been one of my most important role models.
RIP Charlie Munger
Thank you for sharing your vast wisdom. You are a legend.