Three minutes to talk about culture
Wise Munger
Once Munger was walking in a field and struck up a conversation with a farmer. The farmer said, "If only I knew I was dead, then I would never go to that place." ”
Munger suddenly realized that one can be happy if one knows how to sufferIf you know how to lose money, you know how to make money.
I only do what I understand. ”
A person can only become an expert if he focuses on what he can do.
Munger added: "We succeed not because we are good at solving problems, but because we are good at staying away from them." We're just looking for the simple things to do. ”
Munger believes that there is no essential difference between people's mental and physical abilities, and that there are only a few reasons for the huge disparity in the end
Is it simple and straightforward?Is it constantly repeated?Do you stay the course?
Munger and Warren Buffett's investment in Coca-Cola** follows this principle, Coke drinks are single and clear, ordinary people's home-cooked drinks, sweet tooth addiction, inseparable every day, a hundred years of unchanged taste formula, they think that this simple can be repeated can be firmly held.
They liken Coca-Cola to a cash cow that will always have money to take. In the past 35 years, Coca-Cola's stock price has risen and fallen, and it seems to have peaked in 98, and it fell to half of the price halfway through, and it was not until 15 years later in 2013 that Coca-Cola re-ushered in a big rise, they are optimistic about China's overseas market, and firmly hold until now, sharing the huge benefits of the global economic dividend.
Speaking of which, the gap between us and Munger Buffett is actually as follows:
Can you buy it at a time when it is relatively reasonable, in fact, it does not require you to buy cheaply, only requires you to buy it not too expensive. Can you hold it all the time, don't let it go easily.
Munger believes that if a person wants to be rich, he just needs to do two things right in his life.
First, look for what is effective and repeat it.
Munger shared a story.
His father was also a local lawyer in Omaha, and after the death of a client, his father assisted the client's wife in successfully selling the client's factory for more than $300,000. At that time, a hamburger was only a dime, and the 300,000 was a huge amount of money at that time.
The lady was remarkable, she didn't hire an investment advisor and didn't ask anyone for help, she simply split the money into five and used some of it to buy five**. She listed three of them in her will: General Electric, Dow Chemical and DuPont.
Once she bought these**, she never touched them again.
She didn't spend a penny on an investment advisor and didn't buy and sell frequently. Instead, she held on to her investment and just held it quietly. In addition, she bought some municipal bonds. By the 50s of the 20th century, when she died, she left behind a fortune estimated at $1.5 million. She didn't pay any extra fees for the whole process.
I think there will be tremendous growth in the power and chemical industries in the future. ”
That's her strategy, it's very simple;It's just ** and then stick to it. Munger said he admired the lady very much, "She's the kind of person I am, because there are so few people like her." ”
Second, discover what's not working and avoid it.
Once you find those methods and ideas that don't work for you, then try to avoid them. This does not mean that we should blindly avoid difficulties, but we must be brave enough to face our own shortcomings and face up to our own problems. Only in this way can we continue to sum up experience in practice, so as to better grasp the law of success.
Why did Munger close his own company and join Warren Buffett Berkshire immediately?It is because of his outstanding stop-loss ability and the current situation.
He believes that Buffett has an introverted personality, a simple, traditional, thrifty, leisurely life, loneliness, and does not like to be public. Sticking to his principles, he is an out-and-out workaholic.
Munger himself is open, straightforward, passionate, patient and Xi. It is the best match and complement to Warren Buffett, so he has no hesitation in shutting down and merging his multi-retail company and blue-chip printing company into Berkshire.
Willingness to change one's own thoughts and ideas is the key to a person's growth and progress.
Munger later admonished Buffett, "You'd rather buy a great company with an ordinary ** than buy an ordinary company with a great **." One sentence changed Buffett's investment philosophy, and to a large extent, expanded the concept and boundaries of value investment, and pushed value investment to another level.
Munger believes that the core of value investing is to find quality companies that are undervalued and earn a return on holding them for the long term. In 1972, he successfully persuaded Warren Buffett to buy California's largest candy manufacturer, Joy Candy, for $25 million, even though the company's annual profit at the time was only $4 million. Warren Buffett was hesitant to say that the company was "expensive" at first, but Munger firmly said that the company has the advantages of high brand loyalty, low capital demand, and stable growth rate, and is optimistic about its growth potential. Sure enough, Joy Candy generated more than $2 billion in profits for Berkshire Hathaway in the years to come.
Ever since I met Munger, I really went from being an ape to a human. ”
Without Charlie's inspiration, intelligence, and involvement, Berkshire would not have been where it is today. ”
Warren Buffett also called Munger Mr. 'Say No', and many times Buffett proposed some major investments, and Munger would deny them. Warren Buffett said happily, "It is precisely because Munger has denied 90% of his investment that he has succeeded, otherwise he would have stepped on a lot of thunder." The 10% that weren't denied by Munger were really great companies. ”
A lot of people with high IQs are bad investors because they have flaws in their personalities. I think a good character is more important than the brain, you have to strictly control those irrational emotions, you need to be calm, self-disciplined, losses and misfortunes are easy, and you can't be carried away by ecstasy. ”
Think simple and do everything seriously. ”
This is Munger, the wise Munger.
Munger is diligent, kind, enthusiastic, studious, wise, and open-minded, leaving us with a lot of knowledge, and if you want to learn more about it, you can refer to the poor Charlie Munger Book Xi.