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- A Collection Of Wisdom: Munger On Overcoming Adversity, Buffett On Minimizing Risk, & More
A Collection Of Wisdom: Munger On Overcoming Adversity, Buffett On Minimizing Risk, & More
This is the price of excellence...
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Read Time: 3-minutes
I’ve come across quite a bit of quality content lately via social media posts, videos, etc. So for this week’s newsletter, I’ve curated the best of what I’ve seen…
We start with arguably one of the most valuable skills to develop as an investor (and in life): the ability to overcome adversity.
From turbulent markets to trades that aren’t performing exactly how we’d like, how we handle challenges is critical to our success. So, first, we have a video of Charlie Munger sharing how to re-frame our obstacles and turn them into assets.
From there, we turn to the key to investing mastery, the value of simplicity, & more.
Let’s get started.
Charlie Munger on how to overcome adversity (click image to play video):
"The idea that life is a series of adversities and each one is an opportunity to behave well instead of badly is a very, very, good idea." x.com/i/web/status/1…
— Frederik Gieschen (@FrederikNeckar)
7:13 PM • May 14, 2024
The key to excellence & mastery:
"Intensity is the price of excellence."
— Warren Buffett
— Investment Wisdom (@InvestingCanons)
4:15 PM • Jun 27, 2024
The time that leads to mastery is dependent on the intensity of our focus.
— Robert Greene (@RobertGreene)
9:00 PM • Sep 23, 2024
National Chess Champion Josh Waitzkin on preventing mistakes from multiplying:
"One idea I taught was the importance of regaining presence and clarity of mind after making a serious error. This is a hard lesson for all competitors and performers. The first mistake rarely proves disastrous, but the downward spiral of the second, third, and fourth error creates a devastating chain reaction."
Source: The Art of Learning1
On seeing the forest from the trees:
“Your calendar is a better measure of success than your bank account.”
“Nothing in life is as important as you think it is when you are thinking about it.”
The value of physical books:
On the presence of physical books: you look at one of them and remember the contents in a flash.
— Nassim Nicholas Taleb (@nntaleb)
12:36 PM • May 28, 2024
On maintaining a healthy level of skepticism:
“The way to be safe is to never be secure.”
On carving out time & space to think:
"The best way to minimize risk is to think."
Pay the world whatever it takes to leave you alone to think.
— Naval (@naval)
10:34 PM • Sep 16, 2024
"That's what created one of the most successful business records in history: Warren has a lot of time to think."
On selecting projects or a career:
“One sign that you're suited for some kind of work is when you like even the parts that other people find tedious.”
What feels like play to you, but looks like work to others?
— Naval (@naval)
9:16 PM • Dec 10, 2020
On overconfidence:
"Ego sucks us down like the law of gravity."
When we remove ego, we’re left with what is real. What replaces ego is humility, yes—but rock-hard humility and confidence. Whereas ego is artificial, this type of confidence can hold weight. Ego is stolen. Confidence is earned. Ego is self-anointed, its swagger is artifice. One… x.com/i/web/status/1…
— Ryan Holiday (@RyanHoliday)
1:00 PM • Sep 23, 2024
On the value of a simple investment thesis:
"Jean-Georges Vongerichten showed me the value in taking away, taking things off of a plate. He always talked about two, three, four elements on a plate. That's it. The more you put on the plate, the easier it is to hide. The more you take away, there's nowhere to hide—it has to be good."
"One of the greatest ways to avoid trouble is to keep it simple."
Well, that’s all for this week.
I hope you enjoyed these nuggets of wisdom.
See you next Saturday.
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 and their affiliate program for helping 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.
Footnotes:
1 — I do not receive any compensation on purchases made through Amazon.com
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.
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