In the chronicle of American investment, Charlie Munger is a well-known mysterious figure, and rumors about him are always full of contradictions.

Buffett once said: "Munger designed today's Berkshire Hathaway, which is his most important achievement." The blueprint he gave me was simple, that is,'it is much better to invest in a good company at a good price than to buy an ordinary company at a cheap price.' In this way, Berkshire Hathaway was built according to Munger's blueprint. My role is general contractor, while the CEO of Berkshire Hathaway is a subcontractor. "

As a meteorologist and lawyer by training, Munger never came into contact with economics, marketing, finance or accounting in college. How did he become the greatest business genius?

Charlie Munger's excellence comes not only from his outstanding achievements in his investment career, but also from his profound and self-consistent ideology.

The cultivation of the mind of investors

1. It's more useful to know what you don't know than to be smart.

two。 Admitting ignorance is the beginning of wisdom.

3. People are trying to be smart, and I just want to prove that I'm not doing anything stupid, but it's much more difficult than many people think.

4. A good deal can be found by quantitative means. Once we get beyond the shackles of our minds and re-realize what might shock Graham, we can start thinking about better investment opportunities.

5. My success comes from my long-term focus.

6. Waiting will help you become an investor, but most people are in a state of impatience.

7. "you have to be very patient, you have to wait until something happens, and you don't realize that the price you pay is worth it. "

This sentence is against human nature, no one can sit there doing nothing all day, just wait. But it's easy for us because we have a lot of other things to do.

However, for an ordinary person, can you imagine him sitting for five years and doing nothing? You feel that you are not aggressive enough, that you have no value at all, and that you have done something stupid.

8. I think investors need to face up to the actual situation of the company, even if you don't want to; in fact, especially if you don't want to do so.

9. There was a time when no one wanted to come in and we started to invest, and that was a really bad feeling.

10. Successful investments require both enterprise and patience, and you need to be prepared to seize opportunities when they arise, because in this world, opportunities don't last long.

11. Every century, the market will fall by more than 50% two or three times, and if you can't face it calmly, then you are not fit to be an ordinary shareholder. You deserve mediocre results compared to those who are more magnanimous and more calm about market volatility.

twelve。 When we were young, we didn't know what would expand our investment until we met Iska. Eska is the kind of company that we would never consider buying when we were young, when we only knew to look for the right partners. This is a great business and everything is ready. Isn't it good for us to study persistently? It is never too late to mend.

The misunderstanding of investors

1. Following the crowd will only bring you closer to the average.

two。 Forecasting has never been my strong suit, and I don't rely on accurate predictions to make money. We tend to just buy good companies and hold them all the time.

3. The desire to get rich overnight is quite dangerous.

4. As an investor, Graham learned a lot of lessons in the market. The crash and depression that nearly defeated him shaped his idea of evaluating the company and left him scared for the rest of his life. All his methods are to get rid of this feeling.

5. Try not to make stupid mistakes instead of trying to be smart, which is why investors with long-term advantages have made unimaginable gains. As the old saying goes, "drowning in the river will lead to water people." "

6. I think it's crazy to worship diversified investment.

7. From the failed business decisions I have seen in my life, paying too much attention to tax avoidance is one of the main reasons for making stupid mistakes. From now on, my advice is not to participate in any investment projects that have been recommended to you about tax avoidance.

8. As you can see in Berkshire Hathaway's operations, we prefer a conservative approach. We borrow less money on more favorable terms.

We are happy to reduce leverage. You can think we're wrong. Although this makes us make less money, it doesn't bother us. We never feel distressed by missing certain opportunities. What's wrong with other people being richer than you? It is unfounded to worry about this.

9. In the corporate world, if you have a group of analysts who have no common sense but are responsible for due diligence, you are in hell.

10. Wherever there is a high commission, cheating is very likely.

The wisdom of learning

1. This is my life experience. If you can keep the habit of thinking and reading, you won't have to go to work.

two。 There is no single rule for getting rich through investment. You need to know a lot about business, human nature, and numbers, and don't expect a magic system to do it for you.

3. In any year in the past, if you haven't overturned your favorite idea once, then this year is wasted.

4. At the end of the day, try to be wiser than when you get up in the morning. Perform your duties faithfully and excellently, and make a little progress every day. In the end, if you live long enough, most people will get the reward they deserve.

5. Master valuable ideas in important subject areas and often use them. Remember to use it together, not just one part of it.

6. I like people who can honestly admit that they are stupid. I know that if I admit my mistake positively, I will perform better. This is a great learning trick.

7. A person can live a comfortable life without making mistakes, but this is impractical. In fact, one of the tricks in life is to learn to deal with mistakes. Failure to deal with "psychological resistance" is a common reason why many people end up going bankrupt.

8. I most approve of epictetus's attitude towards things. He believes that every missed opportunity in life is an opportunity to exercise and learn, and what you need to do is not to indulge in self-pity, but to take advantage of these bad blows in a constructive way. This is a very correct point of view.

9. In my life, there is no wise man I know who is not learning all the time. You must be shocked when you know how much Buffett and I have read. My children laugh at me because they think I am actually a book with two legs.

10. Buffett is one of the most outstanding learning machines on the planet. Buffett's investment skills improved significantly after the age of 65. Throughout his investment career, I can tell you that if Buffett had stayed at the level of his early knowledge, he would not have achieved what he is now.

11. If you already have the level of wisdom that mature people need, then you have the ability to surpass those who are smarter than you. As long as you draw the most critical points of knowledge from all the different disciplines, not just a few, you will be much smarter than them.

twelve。 In my life, I have seen many people who have made great achievements. Although they are neither the smartest nor even the most diligent, they are all very good at learning. It's important that they get wiser when they fall asleep every night than they do when they get up, son, especially when you're facing a long run in life.

13. Extreme specialization is the key to success. Most people are better at specializing in one area than at understanding the whole world.

14. Look at this generation of people who have electronic devices and can handle multiple tasks at the same time, but I can still confidently conclude that they are not as good as Buffett, who is only focused on reading. If you want to have wisdom, you must calm down and read. This is the right way to get wisdom.

15. We are always learning, revising and abandoning our ideas. To give up your original idea in time and quickly is one of the most precious qualities. You must teach yourself to think of others.

16. If you can't articulate your opponent's point of view more clearly than your opponent, you can't say you have a point to be proud of. This is an important thinking training.

17. People with more seniority than you may affect their cognitive ability because of bias caused by motivation, or other similar psychological factors, in which case you need the courage to overturn their decision. Of course, there are situations where you have to admit that you don't know something, and the best way to do this is to trust professionals.

18. I always keep my distance from people who don't really understand the questions, but answer them with confidence.

19. I think people who deal with multiple tasks at the same time pay a high price.

20. In economics, for example, most people are trained in a single model to try to solve all problems in one way. There is a saying: "to a man with a hammer, everything looks like a nail." "this way of solving the problem is stupid.

21. I think it is necessary to avoid the extreme ideological system that binds people's minds.

The wisdom of life

1. The surest way to get something you want is to make yourself worthy of it.

two。 Being rational is a kind of moral law. Don't be stupid when you shouldn't be stupid.

3. Mozart's madly ruined life is a good example. Because of his unparalleled talent, he has made great achievements, but from the beginning, his life has been quite miserable. He spent all his life living beyond his means, which made him miserable.

4. I have never achieved much success in a field that I am not interested in. If you can't be interested in something anyway, even if you are very smart, it will be difficult for you to achieve great success.

5. The best way to fight against aging is to live well before you get old.

6. In marriage, you should not look for a partner with good appearance and character. You need to lower your expectations to find a partner.

7. Someone once asked me who contributed the most to my personal happiness in my life, and I said, "it's very simple. It's my wife's first husband." "

8. I can eat if I want. I don't have a diet. I never cared about my health, and I never did any exercise that I didn't want to do. If I have achieved anything, it is mainly because I insist on thinking deeply. And some people think that jogging or other sports can make them more progress and give them strength.

9. Three rules of career:

a. Don't sell things you don't even want to buy.

b. Don't work for people you don't respect and admire.

c. Only work with people you like.

10. The highest form of civilization is to form a seamless network full of strong trust-there is no process, but reliable people trust each other. In your own life, you will also yearn for such a seamless network full of trust. If your marriage agreement is full of 47 pages, then I advise you not to get married.

11. Oh, it's useful to deal with people you trust and keep others out of your life. It should be regarded as a guide to life. Smart people will avoid people like rat poison, after all, there are too many such people in life!

twelve。 I like you because you remind me of myself. Who doesn't like to be stared at by his own image?

13. Remember Louis Vincenti's rule: "to tell the truth, you don't have to think about the lies you told." "

14. When I was very young, I got the best legal experience. I once asked my father, as a lawyer, why he didn't work for his best friend Grant McFayden, but for a bragging fool. The father replied, "the man you call the brag is a rich mine that often gets caught up in legal disputes, while McFadden can deal with problems quickly and be friendly, so he rarely gets into legal trouble." "

15. Everyone works better when they get what psychologists call reinforcement. Even Buffett will react if it continues to be rewarded. Keep this in mind and find your way to success by positively strengthening the people around you.

16. When you are faced with an incredible disaster, never let a disaster turn into two or even three because of a collapse of will.

17. In the long run, there is a 100% chance that great civilizations will be surpassed and eventually eclipsed. Therefore, you should understand how civilization is in decline.

18. Life always hurts someone in some way and helps others in some way. In the face of the blow in life, everyone should actively deal with it. A man should be like this, calmly face the unhappiness in life. Don't always complain, and don't expect to solve the problem by complaining.

19. As I grow older, I become more and more experienced. I look like a man who jumped from a skyscraper and said as he descended to the fifth floor, "it's been a good journey so far." "

20. If you've been investing in Buffett for 40 years, you have no right to complain even if he's no longer useful to you.

21. If you are worried about inflation and don't need too many goods, then one of the most effective protective measures is that you can't have too many ridiculous needs in your life.

twenty-two。 It's no use spending time worrying about things you can't handle. If you always feel that something terrible is going to happen when you manage your money, then I suggest that you choose to be a stupid optimist for the rest of your life.

23. Kendall, dean of the Michigan Conservatory of Music, once told me a story. Kendall was in charge of running a candy stall when he was a child. His father saw him eat a piece of candy from the stall. Kendall said: "Don't worry, I will add another piece." "

His father said: "this way of thinking will destroy you." It might be better for you to take everything you want every time and admit that you are a thief. "

24. Well, are envy and jealousy the two commandments of the Ten Commandments?

Do you know what envy means for people who have raised children, run a school, run a law firm or an investment bank?

I have heard Buffett say many times: "what drives the world forward is not greed, but envy." "