Source: Kigaku Club

1. With reverse thinking, problems are easier to solve

1. Investing in a good business at a reasonable price is much better than buying an ordinary business at a cheap price.

2. If you remove our 15 best decisions, our performance will be mediocre. What you need is not lots of action, but lots of patience.

3. Thoroughly understand the problem, and half of the problem is solved. As you have already said, this is a contradiction: a good opportunity, when you first entered the market, full of potential; a great opportunity, overdone, full of crises.

4. For complex adaptive systems and the human brain, problems tend to be easier to solve if you think in reverse.

Let me just use a little bit of reverse thinking right now. What makes us fail in life? What should we avoid?

For example, laziness and lack of faith can cause us to fail in life. If you don't believe what you say, no matter how good you have, you can't avoid a miserable end. So you should get into the habit of saying what you say you have to do; laziness and unbelief are obviously to be avoided.

5. In this situation, the correct persuasion technique is the one Benjamin Franklin pointed out. He said, “If you want to persuade others, resort to profit, not reason.”

6. At Berkshire Hathaway, and at The Daily Journal, we've always done better than average. The question is, how do we do that? The answer is simple: we want to do less.

7. If you borrow someone else's car, don't forget to fill it up and return it to them.

8. Keep everything simple and carry it out seriously.

9. People also need to get into the habit of checking checklists.

Checking checklists can avoid many mistakes, not just for pilots. You should not just master a broad range of basic knowledge; you should make a list of them in your mind and then use them. No other method can achieve the same results.

10. I am very lucky to have understood the truth at a very young age: the surest way to get something you want is to make yourself worthy of it.

This is a very simple truth; it's a golden rule. You must learn not to do to others what you do not want them to do to you.

11. We prefer to invest large amounts of money where we don't have to make additional decisions.

If you buy an item because its value is undervalued, then you must consider selling it when its price rises to the level you expected.

But if you can buy a few great companies then you can sit back and that's great.

12. We never try to be very smart, but we keep trying not to be stupid.

13. Warren and I don't think we have a huge advantage in the tech industry. In fact, it is difficult for us to understand the essence of the development of technology industries such as software and computer chips. So we try to avoid these things and face up to our personal intellectual flaws.

14. The average results must be moderate. As I always say, the iron rule of life is: 20% of people can achieve better results than 80% of others.

15. Going with the flow will only get you closer to the average (only average results).

16. We succeed not because we are good at solving problems, but because we are good at staying away from them. We're just looking for something simple to do.

17. Overestimating your own arrogance can sometimes turn out to be a big deal. This is a very uncomfortable part of modern life. I've learned to adapt. Arrogant fanatics can be big winners once in a while, but I don't want a bunch of cocky fanatics to hang around in front of me; I choose careful people.

2. People calculate too much and think too little

1. You don't need to know everything; just absorb the best ideas in each subject; it's not difficult to do.

2. Gaining the common sense of the system is a powerful tool. There are so many dangers posed by computers. People calculate too much and think too little.

3. I don't want you to be mistaken into thinking that we have any way of learning and acting that will keep you from making many mistakes.

I'm just saying that by learning, you can make fewer mistakes than others — and be able to correct mistakes more quickly after you've made them. However, it is impossible to live a rich life without making many mistakes.

4. Don't be afraid to speak up when you don't understand or have relevant talents. Some people are always so confident in answering questions they don't really understand, and I don't like being around them.

5. Excellent works of literature require readers to think a little bit before they can understand them. If you use your brain to understand a certain truth, you'll remember it better.

6. Common sense is common sense that ordinary people don't have. When we say that someone has common sense, we are actually saying that he has common sense that ordinary people don't have.

People think it's easy to have common sense; in fact, it's very difficult.

7. If you train yourself to be more objective and have knowledge in more subjects, then when considering things, you can be better than people who are much smarter than you. I think this is very interesting.

Besides, you can make a lot of money, and I myself am living proof.

3. Try to have as much interdisciplinary knowledge as possible

1. Most people develop models of thinking in only one subject — economics, for example — and try to solve all problems using one method.

You know what the words say: “To a person with a hammer in their hands, the world looks like a nail.” That's a dumb way to handle the problem.

2. Reading books alone is not enough; you must have a personality that can grasp ideas and do things reasonably. Most people can't grasp the right ideas or don't know how to apply them.

3. I think there are many things people must know other than history. Many of the so-called things are important ideas in all disciplines.

You must master a lot of knowledge so that it forms a frame of thought in your mind that you can automatically use in the days that follow.

If you can do this, I solemnly promise you that one day you will unknowingly realize: “I've become one of the most efficient people of my age.”

4. The essence of the scale advantage theory is that the more products you produce, the better you can produce such products. This is a huge advantage. It has a lot to do with the success or failure of a business.

5. You must have many interdisciplinary models. You might say, “Oh my God, this is so hard to do!”

But luckily, it's not that difficult — because mastering 890 models can almost make you a person with universal wisdom. Of these 890 models, only a few are very important.

6. The basic part of psychology — I call it misunderstanding psychology — is extremely important knowledge, which includes about 20 small principles.

7. There aren't many types of subjects, and there aren't many really useful ideas. Figuring them all out will give you a lot of fun.

Also, if you figure them out through personal exploration rather than memorizing them through paraphrases from others, you will have a stronger grip on those ideas.

8. My previous education was so wrong that I never read anything called modern Darwinism. I read a lot of different books, but I just haven't read this kind of book.

I suddenly realized last year that I was such an idiot that I hadn't even read modern Darwinism, so I went back and added my knowledge of this genre with the help of the great biologist Dawkins of Oxford University and others.

For me, understanding modern Darwinian synthesis theory is definitely a joy. This theory is extremely beautiful and extremely accurate. Once you get the hang of it, it becomes simple.

4. Only with special effort can we find a few opportunities

1. Whether you are right or wrong does not depend on whether others agree or disagree with you — the only thing that matters is whether your analysis and judgment are correct.

2. Whatever the professor says, anyone can do it. The key is to discern what the professor says, what is right and what is wrong. This is a well-educated person.

3. We don't pretend to be omniscient.

We have always been aware that only with special effort can we find exactly the few opportunities. These few opportunities are enough.

4. I knew from a young age that there are only a few major opportunities, opportunities that belong to me. When an opportunity comes, we rush over and seize it. Think about it, isn't your life like this?

5. The first rule of fishing is to fish where there are fish. The second rule of fishing is to remember the first rule. In an extremely competitive environment, no matter how hard you try, it's useless.

6. Stay in this game and keep an eye out. When rare opportunities appear, don't let them slip away; know that not many opportunities are available to every normal person.

7. You must figure out where your strengths lie, and you must compete within your field of competence.

8. It is very important to know the boundaries of your circle of abilities. I don't even know where the boundaries are, how can it be considered a circle of ability? I don't have that ability, but I think I have to make a big mistake.

9. You must always compare what you can do and what others can do. You need to always be firm and rational, especially don't fool yourself.

5. If you tell the truth, you don't need to remember your lies

1. Basically, we choose people we really admire to manage our affiliates. Generally speaking, we get along very easily with them because we love and admire them.

2. I think it's better not to lie to others; it's better to live like us.

Peter Kaufman has said to me many times: “If a con artist knows how much money they can make by being honest, they're definitely not being a liar.” Warren also said a classic saying, “Follow the right path, the wider the road.” This statement is true.

3. The secret to making money is saving expenses and living a simple life.

Warren and I, when we were young and had no money, we all saved money to invest. Everyone can understand the principle of persevering for the rest of your life and being very rich in the end.

4. “Honesty is the best strategy.” —Benjamin Franklin

“If you tell the truth, you don't have to remember your lies!” —Louis Vincendi

5. Life is more than being smart about accumulating wealth.

6. Jealousy is a foolish crime because it is the only one and you can't get any pleasure from it.

7. Overall, jealousy, resentment, hatred, and self-pity are all disastrous states of mind. Excessive self-pity can make people almost paranoid. Paranoia is one of the hardest things to reverse, so don't fall into self-pity.

I have a friend who carries a thick stack of cards with him. Every time someone says something about self-pity, he slowly and exaggerately pulls out that stack and hands over the top one to the person talking.

The card says, “I'm so moved by your story; I've never heard anyone as unlucky as you.”

You might think this is a joke, but I think it's mental health.

Whenever you find yourself feeling self-pity, no matter the reason, even if your child is about to die from cancer, you should think that self-pity is useless.

At a time like this, you have to give yourself a card from my friend.

6. How to find a good spouse, the first thing is that you are worthy of each other

1. The secret to longevity and happiness? That's a great answer because the reason is simple.

Don't be jealous, don't complain, don't spend too much; in the face of any difficulties, maintain an optimistic mindset, work with reliable people, and do your part...

They are all simple truths, and they are also all old truths. I did it and I benefited for the rest of my life.

2. Find a good spouse. What's the best way to find a good spouse? The only best way is that you must first be worthy of having a good spouse, because by definition, a good spouse is no fool.

3. Making friends with “great people who have passed away” sounds fun, but if you do make friends with great dead people with outstanding ideas in your life, then I think you'll live a better life and get a better education.

4. Over the years, reading has brought me so many benefits.

5. The principle is: There are some things that some people can't learn. Some people are naturally better than you. No matter how hard you try, there will always be people who are better than you.

My mentality is, “So what?” Do any of these people in our scene have to stand on top of the world? There's no need for that.

6. The best protective armor for old age is a period of time spent carefully before it.

7. Every day is a little smarter than yesterday

1. None of the smart people I've met in my life (smart people from all walks of life) don't read books every day — none, none.

2. I think life is like a competition, and it's also full of competition. We want those who are the most capable and willing to become learning machines to play the greatest role.

If you want to achieve very high results, you have to be that kind of person.

3. You won't achieve great results without lifelong learning. With the knowledge you already have, you can't get very far in life.

Once you've left here, you'll have to keep studying so you can go further in life.

4. For Berkshire Hathaway, its long-term large investment performance is probably the best in human history.

The method that made Berkshire make a lot of money in one decade might not work that well in the next ten years, so Warren Buffett had to be a machine that constantly learned.

5. I keep seeing some people getting better at life. They're not the smartest, or even the hardest, but they're learning machines, and they sleep a little smarter every night than they did that morning.

Kids, this habit helps you a lot, especially when you have a long way to go.

6. In the case of Warren Buffett, if you watch him with a timer, you'll find that he spends half of his time reading books when he's awake.

He spent most of his remaining time talking one-on-one with some very talented people, sometimes on the phone, sometimes in person, all of whom he trusted and trusted.

7. Cicero famously said that if a person doesn't know what happened before he was born, they will be like an ignorant child in their lives.

8. I often tell a joke about Max Planck.

After receiving the Nobel Prize, Planck went to various parts of Germany to give lectures. Each time, the content was similar; it was all about a new theory of quantum physics.

After a while, his driver memorized the contents of the lecture. The driver said, “Professor Planck, it's pretty boring for us all the time. Let me talk about it when I go to Munich. You sit in the front row wearing my driver's hat, what do you think?” Planck said, “Great.”

The driver then walked up to the podium and gave a lengthy discussion on quantum physics. Then a physics professor stood up and asked a very difficult question.

The speaker said, “Wow, I never thought I'd run into such a simple problem in an advanced city like Munich. I'd like my driver to answer.”

I'm not telling this story to praise the protagonist for being astute. I think there are two types of knowledge in this world: one is Planck knowledge. It belongs to the kind of people who really understand. They have put in the effort, and they have that kind of ability.

The other is driver knowledge; they have learned the skills of parrots; they probably have beautiful hair; they usually have beautiful voices; they make a deep impression. But what they actually have is driver knowledge disguised as real knowledge.

9. Every day when you wake up, try to be a little smarter than you used to be.

Accomplish your tasks seriously and brilliantly. Slowly, you'll make progress, but that progress isn't necessarily fast. But this way you can lay the foundation for rapid progress... slowly moving forward a little bit every day.

At the end of the day — if you live long enough — like most people, you'll get what you deserve.

10. A competitive product, without trying it, is difficult to encourage people to develop another very different habit. Everyone who has been married knows this truth.

11. You must have a keen interest in understanding the reasons behind what is happening. If you can maintain this mindset for a long time, your ability to focus on reality will gradually improve.

12. If you want to be competitive in any field, you must be proficient in all aspects of that field. Whether you like to do this or not, this is determined by the deep structure of the human brain.

8. Being smart means constantly asking why

1. Animals can thrive in places suitable for growth. Similarly, those who focus on a certain field in the business world — and become excellent because of their focus, often get good economic rewards they can't get in any other way.

2. The only way to win is to work, work, work, and hope to have a little insight.

3. One of the key factors for successful investing is having a good personality — most people can't hold back or worry too much.

Success means being very patient, yet able to take initiative when you know it's time to act.

4. Cultivate yourself as a lifelong self-learner through extensive reading; cultivate curiosity and try to be a little smarter every day.

5. If you want to be smart, you must keep asking: “Why, why, why.”

6. The way to be a winner is to work, work, work again, and look forward to seeing a few opportunities.

7. What should young people pursue at work? I have three basic principles.

It's almost impossible to meet all three principles at the same time, but you should try hard:

1. Don't sell things you wouldn't buy yourself.

2. Don't work for someone you don't respect and admire.

3. Work only with people you like.

You must have strict requirements for yourself and continue to improve your cultivation throughout your life to overcome the weaknesses of human nature itself.

8. Students will encounter different problems at different stages, very difficult problems.

I think there are three things that can help you cope with these difficulties: 1. Don't expect too much; 2. Have a sense of humor; 3. Surround yourself with the love of your friends and family; and 4. Most importantly, adapt to changes in your life. If the world hadn't changed, I would still have 12 flaws in my body.

9. Other people's comments on Charlie Munger

1. In Charlie and Warren's case, hard work continues, regardless of whether it motivates them to decide to invest — usually not.

It's no accident that they spend more time studying and thinking than they do.

This mixture of discipline and patience is reflected in the true masters of every industry: an uncompromising determination to “play the cards in your hand.”

Like world-class bridge master Richard Sackhauser, what Charlie cares about is not whether he can win cards himself, but whether he can play his cards well.

Although in Munger and Buffett's world, poor results are acceptable (because some outcomes are beyond their control), poor preparation and hasty decisions are unforgivable because these factors are manageable.

—Peter Kaufman, author of “Poor Charlie's Collection”

2. The source of Charlie's confidence was not who or how many people agreed with or opposed his views, but rather objectively viewed and measured his abilities.

This self-awareness enabled him to have a rare objective attitude when measuring the accuracy of his actual knowledge, experience, and thinking.

—Peter Kaufman, author of “Poor Charlie's Collection”

3. He is extremely intelligent, has a wide range of interests, and never seems to forget anything, even the most esoteric or small things.

His greatest strength is his absolute commitment to honesty, morality, and integrity.

—Louis Simpson, Director & CEO of Asset Operations, U.S. Government Employees Insurance Company

4. He has a rational personality ideal for investing: uncompromising patience, self-discipline, self-control — Charlie never wavered or changed his principles no matter how much pressure he was under.

—Louis Simpson, Director & CEO of Asset Operations, U.S. Government Employees Insurance Company

5. Charlie was a very rational person by nature, and he used it in his business, which made him achieve great commercial results.

In fact, I think Charlie's moral qualities really came from Benjamin Franklin, whom he admired so much.

He is an honest and honest person, always does more than his own internal affairs, and never complains about what others have done.

—Warren Buffett, Chairman & CEO of Berkshire Hathaway

6. This method of practicing tennis is like playing short bars on a golf ball. Few people are willing to use it, yet his father enjoys it. As a result, he also has a competitive advantage that makes others crazy in other areas of his life.

I'm really afraid to play against him. Fortunately, my dad and I are rivals on the tennis court rather than on the business field.

—David Boswick, son of Charlie Munger

7. He knows how to focus and focus on a problem without outside interference.

—Bill Gates, co-founder of Microsoft

8. He is truly the most profound thinker I have ever met. From the principles of doing business to the laws of economics, from the design of student dormitories to the design of yachts, he has no rivals. Charlie has a knack for using simple descriptions to get to the point.

—Bill Gates, co-founder of Microsoft

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