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- A Collection Of Wisdom: Charlie Munger On "Going Big," Warren Buffett's Reading Advice, & More
A Collection Of Wisdom: Charlie Munger On "Going Big," Warren Buffett's Reading Advice, & More
Charlie Munger: "That's the secret to life."
Read Time: 3-minutes
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I came across quite a bit of wisdom this week, so I've compiled the best of what I've seen.
We begin with one of the most important applications of developing good judgment: the ability to "go big" when you know you've got a rare investing opportunity. Charlie Munger shares his experiences (Coca-Cola) with this in a video interview.
From there, we look at some of Warren Buffett's reading advice, the unexpected benefits of writing, & more.
Let's get started.
Publishing reminder: As mentioned in last week's newsletter, I need to pause publishing for the time being. Thank you for your understanding.
Charlie Munger on “going big” (click image to play video):
Charlie Munger: "We tend to go in heavily [when a great investment opportunity presents itself]. For many, many months, we were buying as much Coca-Cola as we could buy — roughly one-third of the volume trading every day for months. We were very aggressive."
— Kevin Carpenter (@kejca)
5:15 PM • Nov 17, 2024
“I think the tragedy in life is to be so timid you don't play hard enough."
Knowledge is power:
"The advice I would give is to read everything in sight."
— Warren Buffett
— Investment Wisdom (@InvestingCanons)
2:02 PM • Oct 29, 2024
You are like a hunter: your knowledge of every detail of the forest and of the ecosystem as a whole will give you many more options for survival and success.
— Robert Greene (@RobertGreene)
5:00 PM • Nov 20, 2024
"The beauty of it is that knowledge is cumulative. And even what you're learning about Company A will help your thinking about Company B."
— Warren Buffett
— Investment Wisdom (@InvestingCanons)
2:03 AM • Nov 20, 2024
The unexpected benefits of writing:
Paul Graham (@paulg) on how writing helps you discover new ideas:
“A good writer doesn’t just think, and then write down what he thought, as a sort of transcript. A good writer will almost always discover new things in the process of writing.”
— Shane Parrish (@ShaneAParrish)
1:04 PM • Nov 13, 2024
“There is nothing like writing to force you to think and get your thoughts straight.”
On moving on from a poor investment:
A surefire way to make a bad situation worse is to continue replaying it in your mind.
The damage is done. The only thing that matters now is making the best choice given your current position.
Next play mentality.
— James Clear (@JamesClear)
4:45 PM • Nov 13, 2024
Make it fun:
“You can’t compete with someone who is having fun.” — @fortelabs
— Chris Williamson (@ChrisWillx)
12:00 PM • Nov 18, 2024
"To me, making money is an interesting game. The reason I continue is similar to why top golfers keep playing. They're not doing it for the money—it's for the love of the sport."
— Warren Buffett
— Investment Wisdom (@InvestingCanons)
10:15 PM • Nov 18, 2024
Lessons from sports that can apply to investing:
Nick Saban; Do we have ‘Show Dogs’ on the team, or do we have ‘Hunting Dogs’ on the team?
Hunting Dogs are focused on discipline, commitment, accountability, doing the right things and getting better.
Show Dogs are worried about how they look and playing time.
— Coach's Diary (@ACoachsDiary)
3:39 PM • Nov 18, 2024
More on not worrying about how we look:
“It is impossible to get better and look good at the same time. Give yourself permission to be a beginner.”
— Julia Cameron, The Artist’s Way— Tim Ferriss (@tferriss)
7:49 PM • Nov 19, 2024
“If you wish to improve, be content to appear clueless or stupid.” — Epictetus
— Daily Stoic (@dailystoic)
3:00 PM • Nov 11, 2024
On outliers:
Imagine two possible course of events: the most absurd development & the most logical one. At least one of them should take place, perhaps even both.
— Nassim Nicholas Taleb (@nntaleb)
7:14 PM • Nov 10, 2024
"People don't know as much as they think they know. Society has a terrible time preparing for things that are remote but are possible and will occur sooner or later."
— Warren Buffett
— Investment Wisdom (@InvestingCanons)
3:03 AM • Nov 21, 2024
On “overnight success” and compounding:
"There is no such thing as a quantum leap. There is only dogged persistence – and in the end, you make it look like a quantum leap."
— James Dyson
— Shane Parrish (@ShaneAParrish)
4:20 PM • Nov 12, 2024
“You climb as hard as you can by just advancing one inch at a time—that’s the secret of life.”
Well, that's all for now.
I hope you enjoyed these nuggets of wisdom.
Two resources I think you might like:
Book Summaries: One of the most important lessons from Charlie Munger is to strive to become a little bit wiser each day. To accelerate my learning on everything from investing & decision-making to negotiating & habit-building, I use Blinkist (Thank you to the Blinkist team as their affiliate program helps keep this newsletter free to the reader). Blinkist offers easily readable book summaries to help you get the most valuable ideas from the most popular books. You can check out Blinkist here.
Mental Exercises: To paraphrase Morgan Housel, the common factor among elite investors is they have complete control over the space in between their ears. Financial news networks and social media can create a lot of "noise" for investors. To stay focused and calm, I like to use Headspace (I don't receive any compensation from Headspace currently). Headspace offers mindset and breathing exercises to help you keep control over the space between your ears. You can check out Headspace here.
Disclaimers
This material is not investment advice. No responsibility for loss occasioned to any person or corporate body acting or refraining to act as a result of reading this material can be accepted by the publisher. Additional disclaimers here.
Worth Exploring:
Howard Marks: China Opportunities, Trump’s Cabinet, & Market Sentiment
Cullen Roche: Is The U.S. Government Going Broke?
Morgan Housel: Why Pessimism Sounds So Smart
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