Munger s Advice There are 3 signs that the poor have before they become rich

Mondo Health Updated on 2024-03-02

When a person's wealth status changes, there will always be some signs in him. Of course, we are all more interested in the signs of getting rich.

I found the answer after I read the books of Charlie Munger, a 99-year-old billionaire. This billionaire is not only a partner of Warren Buffett, but also a partner of Berkshire Hathaway, the world's largest company.

In his writings, he shares an important point: there are always three signs in a person before they become rich. If you are keenly aware of and grasp these signs, fortune will naturally come your way.

One. Cognitive thinking change

Munger frequently mentions in the book: "If there is only a hammer in the hand, everything is like a nail", which is true.

People in the world are often limited by a single perspective, and they always respond to problems with habitual thinking, which is really unwise. If you can succeed by thinking by inertia, then you should have rich people all over the world, but this is not the case.

The reason why Munger can lead to wealth step by step is that he constantly absorbs various thinking models when facing problems, and then deals with them properly. He knew that people could not acquire wealth beyond their knowledge. Whether you are working or starting a business, if you only act with a single mind, it is stubbornness rather than persistence. Naturally, wealth will not come near you. Keep up with the times, have the courage to change, and learn various ways of thinking, so that you can keep up with the pace of the times and gradually become wealthy.

Two. Be persistent

In Munger's eyes, if an individual can use analysis as a grinding stone, choose as a brush, focus on his own goals and principles, and not be disturbed by external storms, then his future is very likely to shine with wealth. However, it's not simple. Analysis, selection and focus, these three links are indispensable. If there is any deviation in any link, it may lead to the loss of the previous work. Munger and Warren Buffett, two giants in the investment world, have always adhered to "value investing" in their investment strategy. What is value investing? That is, choose the company carefully, invest with all your heart, and be friends with time. Once chosen, it is committed. Otherwise, all efforts will be in vain. For example, if you're thinking about whether you should stick with your current career, you might want to open Careers** to get a preview of how the salary will look in that role in a few years. If you think it's possible to double it, then you need to keep working hard, keep learning, and improve yourself. Otherwise, you will choose to escape when you encounter difficulties, and your dreams of high salary and wealth will only drift apart. That's why it's important to stick to your principles.

Three. Eliminate miscellaneous and simple

There is a wise saying in life: everything is clear, everything is loose. In fact, most of us have excellent abilities, but we often have problems with thinking, making choices and trade-offs. Often, because we can't overcome human greed, we want everything and end up getting nothing. In Munger's view, the world is full of complexities, and we can't fully understand them all, nor can we fully grasp them. So, he chose to simplify the complexities and develop a systematic investment list, which is like applying a formula to invest. People who can see the simple essence in the complex social phenomena are truly powerful. With such a person, wealth will naturally come close to him. Because they have seen through the truth of life and know that everything in the world is there, but one person cannot fully grasp it. Mastering only a small part of it is enough for him to obtain an astonishing fortune. Do you agree with that? If you also think this point of view is worth sharing and supporting, welcome to like and share. Because this is our understanding and pursuit of life, and it is also our wisdom and strength in the journey of life. Munger

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