As the partner, friend, and life mentor of the stock god Buffett, Charlie Munger has gone through more than 50 years of cooperation with Buffett. His wisdom and mind are worth reading.
This book was compiled by Munger’s friend Peter Kaufman. The whole book is about Munger’s life experience and philosophy.
The first part is Munger’s biography, as well as the evaluation of Munger by Buffett, Munger’s family and friends, followed by the main speeches and articles. A lot of content in it is about Charlie Munger's learning methods, how to use interdisciplinary knowledge to see the world, and how to make investments. There is a lot of application and research of psychology in business activities.
Munger is an upright person. He always does more than his share of the work, and he never complains about what others have done. He never second-guessing what I do, even though we do a lot of things. Sometimes our opinions differ, but he is a perfect partner.
1. Do the job right the first time
My task every morning is to pick up and drop off the maid, which also includes going to town to buy newspapers. One day, it was windy and rainy, and the waves on the lake were very big. , through all the thrills and difficulties. I finally went to the town and took my daughter home, but I forgot to buy a newspaper. Charlie asked me: "Where is the newspaper?" I said I didn't buy it. He paused for a second and then said: "Go again and buy the newspaper." Buy it and don’t forget it in the future!” I had no choice but to go back to town to buy newspapers in the wind and rain. The waves on the lake were rough and the wind and rain were beating on the boat. At that time, I told myself that I would never let such a thing happen again.
2. Take Responsibility
One time, I was on a sailboat with some friends and my car keys fell out of my pocket into five feet of murky water and I came home. Frankly speaking, there are no locksmiths in the big forest area of ??northern Minnesota, and Charlie cannot tolerate such stupid behavior. Less than a second later, he proposed a solution: "Go underwater with your friends and find it." Don’t go home if you don’t find the key.” I finally went home with the golden key.
He knows how to concentrate on a problem without being disturbed by the outside world. Even if someone walks into the room, pats him on the back, brings him another cup of coffee or something else, Charlie He would not be aware of their presence, because all his extraordinary intelligence and intelligence were used.
The reason why people make mistakes in investment management can be explained by a story: I once saw a guy selling fish hooks, and I asked him: "Oh my God, these fish hooks of yours are actually green and purple." , Will the fish really take the bait?" He said, "Sir, I'm not selling to fish." Coca-Cola uses the Pavlov effect and has a strong social recognition effect. It is a drink that tastes good, refreshing, cool and refreshing, and can induce operant conditioned reflexes. These three factors will increase Coca-Cola's sales for a long time, making consumers think of those they like or admire. something. This is the successful application of psychology in business.
Although the second half of the book is difficult to read, the philosophy held by Charlie Munger is actually very simple. In Jacoby's famous saying, "Think the other way around, always think the other way around." "So Munger always thinks in reverse when encountering things, sticks to his own rationality, and sticks to his reading habits. Many investors read this book as a bible.
First of all, find someone smarter and wiser than you. After you find him, ask him not to show off that he is smarter than you, so that you can benefit from many of his ideas and suggestions. were praised for their achievements.
It is best for partners to work independently. You can be a commanding partner, an obedient partner, or a partner who always collaborates equally. I have been all three. .
There will always be people who are better than you in some aspects. You must first become a subordinate before you can become a leader. People should learn to play various roles.
Many of Charlie Munger’s ideas came from Benjamin Franklin, so everyone must have a spiritual role model that they admire. Sometimes what changes your life is an article or a book.
Warren Buffett’s “Silent Partner” Charlie Munger, who enjoys being low-key, has used his wisdom to become a veritable master.