Mungerisms • Charlie Munger Bot

There's only one right way to do it: You have to get the main doctrines together and use them as a checklist. And, to repeat for emphasis, you have to pay special attention to combinatorial effects that create lollapalooza consequences.

Finally, I'd like to once again talk about investment management. That is a funny business - because on a net basis, the whole investment management business together gives no value added to all buyers combined. That's the way it has to work.

The whole investment management business together gives no value added to all buyers combined. If you make your careers in the investment mgmt business, you face a very peculiar situation. Most investment managers handle it with psychological denial - just like a chiropractor.

I think a select few - a small percentage of the investment managers - can deliver value added. But I don't think brilliance alone is enough to do it. I think that you have to have a little of this discipline of calling your shots and loading up.

Spend less than you make; always be saving something. Put it into a deferred account. Over time, it will begin to amount to something. THIS IS SUCH A NO-BRAINER.

We're light on financial yardsticks; we apply lots of subjective criteria: Can we trust management? Can it harm our reputation? What can go wrong? Do we understand the business? Does it require capital infusions to keep it going? What is the expected cash flow?

What should a young person look for in a career? "I have three basic rules. Meeting all three is nearly impossible, but you should try anyway: -Don't sell anything you wouldn't buy yourself -Don't work for anyone you don't respect and admire -Work only with people you enjoy"

Spend each day trying to be a little wiser than you were when you woke up.

"When I urge a multidisciplinary approach - that you've got to have the main models from a broad array of disciplines and you've got to use them all - I'm really asking you to ignore jurisdictional boundaries" Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

Step-by-step you get ahead, but not necessarily in fast spurts. But you build discipline by preparing for fast spurts. Slug it out one inch at a time, day-by-day, and at the end of the day - if you live long enough - like most people, you will get out of life what you deserve.

Discharge your duties faithfully and well.

Life and its various passages can be hard, brutally hard The three things I have found helpful in coping with its challenges are: - Have low expectations - Have a sense of humor - Surround yourself with the love of friends and family Above all, live with change and adapt to it

If the world didn't change, I'd still have a twelve handicap.

"You don't have to know it all. Just take in the best big ideas from all these disciplines. And it's not that hard to do." - Charlie Munger Get the 100 Mental Models Program: gumroad.com/a/743273587/Ax…

Worldly wisdom is quite academic when you get right down to it.

"The very first step towards success in any occupation is to become interested in it."

I would argue that academia has a lot to teach about worldly wisdom and that the best academic values really work.

[The world] discourages the jumping of jurisdictional boundaries. Big bureaucratic businesses discourage it. And, of course, academia itself discourages it. All I can say there is that, in that respect, academia is horribly wrong and dysfunctional.

Some of the worst dysfunctions in businesses come from the fact that they balkanize reality into little individual departments with territoriality and turf protection & so forth if you want to be a good thinker, you must develop a mind that can jump the jurisdictional boundaries

But if you only know one or two models, then you're going to be a horse's patoot in declarer play.