Charlie Munger on Expectations

“This modern world is radically different and I’m not sure if I were starting out in your world how well I would do,” he said. “It would be a lot harder than it was to get ahead in the world the way it was when I came up. My best advice, I think you would be happier if you reduced your expectations.”

Charlie Munger  / FT, February 12 2020

Charlie Munger on Rewards

To get what you want, you have to deserve what you want. The world is not yet a crazy enough place to reward a whole bunch of undeserving people.

~ Charlie Munger

Charlie Munger on Pain

Pain-Avoiding Psychological Denial: one should recognize reality even when one doesn’t like it.

~ Charlie Munger

Charlie Munger on Mistakes and Memory

Forgetting your mistakes is a terrible error if you’re trying to improve your cognition. Reality doesn’t remind you. Why not celebrate stupidities in both categories?

~ Charlie Munger

Charlie Munger on Difficult Things

We have three baskets: in, out, and too tough. … We have to have a special insight, or we’ll put it in the “too tough” basket.

~ Charlie Munger

Charlie Munger on Old Age

The best armour of old age is a well spent life preceding it.

~ Charlie Munger

Charlie Munger on IQ and Temperament

A lot of people with high IQs are terrible investors because they’ve got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.

~ Charlie Munger

Charlie Munger on Difficulties

If something is too hard, we move on to something else. What could be simpler than that?

~ Charlie Munger

Charlie Munger on Learning

I believe in the discipline of mastering the best that other people have ever figured out. I don’t believe in just sitting down and trying to dream it all up yourself. Nobody’s that smart.

~ Charlie Munger

Charlie Munger on Learning

I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up and boy does that help, particularly when you have a long run ahead of you.

~ Charlie Munger

Charlie Munger on Ideas

“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.”

~ Charlie Munger

Charlie Munger on Problem Avoidance

“A lot of success in life and business comes from knowing what you want to avoid: early death, a bad marriage, etc.”

~ Charlie Munger