Money and Finance
- A Few Related Quotes...
As I came across the Russo quote below again, I was reminded of a few others, so I thought I'd group them together. From Tom Russo:…what I have observed about the really great investors is the simple decisions that they end up having to make...
- Charlie Munger On Rationality...
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:What is the central theme that the people in this room represent? I’d argue that it’s rationality rather than to make more money than other people. I’d argue that rationality is a high...
- Warren Buffett Quote On Filters
As I've previously mentioned (HERE) how important I think filters are in deliberate practice and achieving expertise in investing, this quote from Warren Buffett during yesterday's Berkshire Hathaway Annual Meeting really struck a chord with me:"Charlie...
- Investment Nuggets
Though not the most recognised public face of Berkshire Hathaway, Charlie Munger’s contributions to the philosophy of value investing cannot be overlooked. Notably, Warren Buffet credits Munger with Berkshire’s investments in high quality companies...
- Charlie And Checklists
"Checklist routines avoid a lot of errors. You should have all this elementary [worldly] wisdom and then you should go through a mental checklist in order to use it. There is no other procedure in the world that will work as well." -- Charlie Munger -...
Money and Finance
Improving rationality...
Someone over at the Corner of Berkshire & Fairfax posted their question and Charlie Munger's answer from yesterday's Daily Journal Meeting this is worth repeating here as well:
Hi Charlie, I'm JD from Phoenix. At Berkshire last year you said that rationality was one of the things that was most important to you. What advice can you give to someone who's looking to improve his own rationality?
Charlie Munger: Well I say if you start working at it young and keep doing it until you're as old as I am, that's a very good idea. It's a very good idea, and it's a lot of fun-- particularly if you're good at it. I can hardly think of anything that's more fun. I think I have a lot of cousins in this room, and--and I can say you're on the right track.
You don't have to be the Emperor of Japan to get fun out of rationality. You can avoid a lot of hopeless messes, you can help other people scramble out of their messes, you can be a very constructive citizen if you're always rational. And being rational means you avoid certain things. It's like, I don't want to go where the standard result is awful.
Where is the standard result awful? Try anger. Try resentment. Try jealousy. Envy. All these things are just one-way tickets to hell. And yet some people just wallow in them. And of course it's a total disaster for them and everyone around them.
- A Few Related Quotes...
As I came across the Russo quote below again, I was reminded of a few others, so I thought I'd group them together. From Tom Russo:…what I have observed about the really great investors is the simple decisions that they end up having to make...
- Charlie Munger On Rationality...
Via Whitney Tilson’s notes from the 2006 Wesco Annual Meeting:What is the central theme that the people in this room represent? I’d argue that it’s rationality rather than to make more money than other people. I’d argue that rationality is a high...
- Warren Buffett Quote On Filters
As I've previously mentioned (HERE) how important I think filters are in deliberate practice and achieving expertise in investing, this quote from Warren Buffett during yesterday's Berkshire Hathaway Annual Meeting really struck a chord with me:"Charlie...
- Investment Nuggets
Though not the most recognised public face of Berkshire Hathaway, Charlie Munger’s contributions to the philosophy of value investing cannot be overlooked. Notably, Warren Buffet credits Munger with Berkshire’s investments in high quality companies...
- Charlie And Checklists
"Checklist routines avoid a lot of errors. You should have all this elementary [worldly] wisdom and then you should go through a mental checklist in order to use it. There is no other procedure in the world that will work as well." -- Charlie Munger -...