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kulman
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   Topic: Mungerisms: Words of Wisdom from Charlie
Posted: 08/Mar/2007 at 6:22pm |
While Warren Buffett gets most of the attention, Charlie Munger, his partner in managing Berkshire Hathaway is also an investment genius in his own right. He has an acerbic, dry wit which makes interesting reading. This thread is devoted to Charlie's words of wisdom.
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A young shareholder asked Munger how to follow in his footsteps to become Rich.
Munger: "We get these questions a lot from the enterprising young. It's a very intelligent question: You look at some old guy who's rich and you ask, 'How can I become like you, except faster?'
Spend each day trying to be a little wiser than you were when you woke up. Discharge your duties faithfully and well. 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, at the end of the day -- if you live long enough -- most people get what they deserve."
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 08/Mar/2007 at 6:13am |
"What's the best way to get a good spouse? The best single way is to deserve a good spouse because a good spouse is by definition not nuts."---Charlie Munger
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 12/Mar/2007 at 7:19am |
The mental habit of thinking backward forces objectivity. One of the ways you think a thing through backward is you take your initial assumption and say, Let’s try and disprove it. For example, if you were hired by the World Bank to help India, it would be very helpful to determine the three best ways to increase man-years of misery in India—and, then, turn around and avoid those ways. So think it backward as well as forward. It’s a trick that works in algebra and it’s a trick that works in life. If you don’t, you’ll never be a really good thinker.---Charlie Munger
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Life can only be understood backwards—but it must be lived forwards
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s_praharaj
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Posted: 13/Mar/2007 at 10:28pm |
Kulmanji,
Thanx a lot for starting this thread on Charles Munger.
He is no less than Warren Buffet and even Buffet acknowledges that.
I have read one of his books, "Poor Charli's Almanac". If you know any other books pls, let me know.
Once Warren Buffet was asked to say about the secrets of success of Munger. Warren Buffet's reply to the audience was as follows.
"Well, One time some attractive woman sat next to Charlie and asked him what he owed his success to, and , unfortunately, she insisted on a one word answer. He had a speech prepared that would have gone on for several hours. But when forced to boil it down to one word, he said that was "rational".. You know, he comes equipped for rationality, and he applies it in business. He doesn't always apply it elsewhere, but he applies it in business and that has made him a huge business success."
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Shashi Praharaj
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kulman
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Posted: 13/Mar/2007 at 10:32pm |
The ethos of not fooling yourself is one of the best you could possibly have. It's powerful because it's so rare.---Charlie Munger
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 13/Mar/2007 at 10:37pm |
Thanks Shashi jee for that anecdote.
The word RATIONAL literally means: Having its source in or being guided by the intellect (distinguished from experience or emotion)
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Life can only be understood backwards—but it must be lived forwards
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kulman
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Posted: 14/Mar/2007 at 6:10pm |
"The idea of caring that someone is making money faster (than you are) is one of the deadly sins. Envy is a really stupid sin because it's the only one you could never possibly have any fun at. There's a lot of pain and no fun. Why would you want to get on that trolley?"
---Charlie Munger
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Life can only be understood backwards—but it must be lived forwards
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deveshkayal
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Posted: 14/Mar/2007 at 7:42pm |
I know Kulmanji has already posted this in Warren Buffet thread,but then i would like it here..
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In the Bookworm’s corner of our bazaar, there will be about 25 books and DVDs – all discounted – led again by Poor Charlie’s Almanack. (One hapless soul last year asked Charlie what he should do if he didn’t enjoy the book. Back came a Mungerism: “No problem – just give it to someone more intelligent.”)
---from WB's letter to shareholders 2006.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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