10 Life Lessons from Investing Legend Charlie Munger

The best thing a human being can do is to help another human being know more.

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Early this week, marked the 100th birthday celebration of Charlie Munger, a renowned investor and teacher with a remarkable legacy.

While Warren Buffett is often the face of Berkshire Hathaway, Munger had a significant role in the company's success.

Buffett held Munger in high regard, praising his extraordinary intellect as the "best thirty-second mind in the world." Others, such as Bill Gates and Mohnish Pabrai, also lauded Munger's unique thinking abilities.

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Charlie Munger's brilliance stemmed from a lifelong dedication to gaining wisdom through reading, curiosity, observation, and self-reflection spanning over 80 years.

As I celebrate Munger's 100th birthday, I recognize not just the milestone but also reflect on the lasting legacy of a man who became a giant in his own right.

In this week’s newsletter, I will share some of the “10 Life Lessons from Investing Legend, Charlie Munger”.

Also, as a bonus, check out my recent video featuring Rick Rule, a highly experienced natural resource investor and speculator.

Rick Rule shares insights on Munger’s investment principle about “Being Patient”.

Discover how patience can be a valuable asset for you as a long-term investor.

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Take Simplicity Seriously

“Take a simple idea and take it seriously.” — Charlie Munger

Invest wisely in exceptional businesses at reasonable prices. Amidst the financial industry’s complexity, opt for ethical businesses and exercise patience.

Unlock better performance through simplicity.

Charlie Munger aptly noted, “Simplicity has a way of improving performance, enabling us to better understand what we are doing.”

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Be A Little Wiser Everyday

“Spend each day trying to be a little wiser than you were when you woke up.” — Charlie Munger

Charlie Munger was known for his voracious reading habits and delved into science and history books late into the night. His household manager compared his obsession with a book to a dog devouring a bone, revealing Munger’s ability to finish a book in just two days.

In the pursuit of knowledge, Munger emphasizes the wealth of solutions and insights left by brilliant minds in well-organized books, articles, and platforms like YouTube.

Munger famously said “I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up, and boy does that help, particularly when you have a long run ahead of you.”

According to Munger, success lies in being a perpetual learner, steadily accumulating wisdom each day. It’s not always about being the smartest or the most diligent, but about consistently growing in knowledge — a practice that proves invaluable, especially in facing long-term challenges.