Charlie Munger Tag Archive

Business first, management second

(Excerpt from Charlie Munger’s ‘Bag of Tricks’) “We have a very peculiar way of looking at things. We want to buy something that’s intrinsically a very good business, meaning that an idiot could run it and...

Investing Read More

You win by losing less

(Excerpt from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) He Charlie Munger claimed that his best ideas haven’t done better than others’ best ideas, but he’s lost less on his worst...

Fallibility, Inversion, Investing, Via Negativa Read More

A mistake is made if you had legit confidence about something but you fail to act big

(Extracted from University of Berkshire Hathaway by Daniel Pecaut and Corey Wrenn) Munger observed that the most extreme mistakes in Berkshire’s history show up as opportunity costs. … In his younger...

Circle of Competence, Investing, Kelly Criterion, Life Read More

Destroy your best-loved ideas constantly

“Any year that you don’t destroy one of your best-loved ideas is probably a wasted year.” Charlie Munger...

Inversion Read More

Wait, wait, wait, pounce!

If you took our top fifteen decisions out, we’d have a pretty average record. It wasn’t hyperactivity, but a hell of a lot of patience. You stuck to your principles and when opportunities came along, you pounced on...

Investing, Nonlinearity Read More

Don’t be stupid

“It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent. There must be some wisdom in the folk saying, ‘It’s the...

Via Negativa Read More