Munger s Way Learn the truth of life from investment masters

Mondo Finance Updated on 2024-02-01

In my heart, there are only two idols who have a sense of soul fit with me, one in China and one outside, the "middle" is the old master of Zeng Guofan, and the "outside" is the old man Charlie Munger. I still remember the feeling of getting "Poor Charlie's Book" back then, and I don't know how many times I read it. The chapters of "Lollapalooza Effect (Multidisciplinary Confusion Effect)", "Human Misjudgment Psychology", "How to Live a Painful Life" and "The Idea of Investing in Coca-Cola" made me feel enlightened, and the sentence "With a hammer in my hand and only a nail in my eye" completely changed my cognitive level, and since then I have embarked on a completely different path from the past.

Unlike "Poor Charlie's Book", which mainly records Munger's speech quotations, this "Munger's Way" is mainly Charlie Munger's speech at the shareholders' meeting, which is more colloquial than "Treasure Book" and reflects Munger's thoughts more diversely. However, in terms of the level of thinking and the profundity of the content, I recommend "Poor Charlie's Book".

Here are a few sentences of the book's views and encouragement.

1.About potential. "Some managers have not proven themselves, they have not created a lot of asset value, and some people conclude that they will be able to achieve extraordinary things in the future. This kind of logic can't stand the test of practice, or is our approach more reliable" - how much money is used to do how much work, is a false proposition, and only those who have proved themselves deserve a better consideration.

2.It's about great people. "In Warren Buffett's eyes, a good manager is like this: you throw him off the train, throw him into a remote town, don't give him money, he runs honestly in this town, and it won't take long for him to make a fortune again" - if it's a maxima, even if it's half-full, it's better than the average horse, so don't blindly complain about the environment, see if you're doing your best.

3.About Partners. "Experience has taught us that people of poor character are a scourge. In addition to those with poor character, there is another type of people, which is also a ...... we should stay away fromThe French Army Code of Conduct divides military personnel into four categories. There is a group of people, stupid and lazy, and the vast majority of soldiers in the army belong to this ......Finally, there is another category of people, stupid and hardworking. Such people must be dismissed, according to the Army Code of Conduct, "- the choice of partners is very important."

4.About the strategic direction. "'It's better to be vaguely correct than precise wrong', for crucial information, we don't have accurate figures, we will try our best to estimate, and we will never rely on only accurate partial information to make decisions" - don't waste all your time on accuracy, think comprehensively.

5.About experience. "We are all on the hunt for wisdom. I want to tell you that I only have to read the newspaper and look at other people's experiences to come to the right conclusions. I did learn a lot from other people's experiences. A person who cannot learn from the experience of others is destined to fall all the time for the rest of his life. However, there is a lot of truth that I have learned only after I have suffered a loss" - if you want to learn to swim, don't look at the pool, you have to jump down.

6.About listening to suggestions. "Years ago, I had a friend in Pasadena who was in the fishing gear business. His ** fish hooks are colorful. I've never seen a fish hook so colorful before. I asked him, "Your fish hook is colorful, is it easier for fish to take the bait?" He replied, "Charlie, I don't sell this hook to fish." "You laugh at it, everybody has that tendency. Everyone has this prejudice in their subconscious: when they give advice to others, they think they are thinking about others, but in fact, they are acting in their own interests" - if you need a haircut, don't ask the barber.

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