{"id":21806,"date":"2024-05-03T19:33:06","date_gmt":"2024-05-03T19:33:06","guid":{"rendered":"https:\/\/www.thinkadvisor.com\/2024\/05\/03\/6-lessons-from-charlie-munger-on-investing-and-business\/"},"modified":"2024-05-03T19:33:06","modified_gmt":"2024-05-03T19:33:06","slug":"6-lessons-from-charlie-munger-on-investing-and-business","status":"publish","type":"post","link":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/2024\/05\/03\/6-lessons-from-charlie-munger-on-investing-and-business\/","title":{"rendered":"6 Lessons From Charlie Munger on Investing and Business"},"content":{"rendered":"
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2. Build your board with people you admire.<\/h2>\n

Davis recalled Munger\u2019s thoughts on choosing directors, saying, \u201cThose people are the face of your clients \u2014 and keeping people in front of you that you don\u2019t want to disappoint will always make you behave better.\u201d<\/span><\/p>\n

3. Earn people\u2019s trust.<\/h2>\n

Munger advised living life \u201cin a web of deserved trust,\u201d Davis recalled.<\/span><\/p>\n

\u201cHe said that the nature of trust, of behaving in a certain way, it makes other people better as well,\u201d and advised treating people in a way that they\u2019re given \u201ca reputation to live up to,\u201d Davis said.<\/span><\/p>\n

4. Be patient.<\/h2>\n

Munger \u201ctalked about how difficult it is to do nothing \u2026 And he said, it\u2019s often not that making a good decision is rare and valuable, but then sticking with it, not getting shaken out, letting it unfold over a very long period of time,\u201d Davis said.<\/span><\/p>\n

\u201cSo Charlie was very comfortable doing nothing for long periods of time, and often in the investment industry, professionals are uncomfortable with that, because it looks like they\u2019re doing nothing.<\/span><\/p>\n

\u201cBut Charlie and I used to admire the man who built the Suez Canal, the architect named Ferdinand de Lesseps. And he had a quote that Charlie and I both liked \u2026 Patience sometimes requires more strength of character than does action. And for investors, patience is sort of the fundamental pillar.\u201d<\/span><\/p>\n

5. Keep learning.<\/h2>\n

Munger believed in \u201cconstant learning,\u201d Davis said. <\/span><\/p>\n

\u201cAnd a subset of constant learning is unlearning things over time. In other words, the more something has worked, the more you believe it \u2014 and often in the nature of investing, the harder it becomes to change your mind.<\/span><\/p>\n

\u201cAnd yet, facts and circumstances change over time. And you have to be not just good at bringing in new ideas, you have to be good at discarding old ideas that no longer work.<\/span><\/p>\n

6. Engage in \u2018constant self-criticism.\u2019<\/h2>\n

By this, Davis said, Munger referred to \u201cthe humility to constantly be asking yourself, \u2018What if I\u2019m wrong? What do I really know? What is really my edge in this? What do I understand that others don\u2019t?\u2019<\/span><\/p>\n

\u201cAnd again, that\u2019s not a skill set that comes easily \u2014 constant self-criticism \u2014 because of course, it can lead to things like self-doubt and self-loathing. So there\u2019s a fine line between conviction and self-criticism. And that line Charlie believed was absolutely essential for success over time as an investor.\u201d<\/span><\/p>\n

Pictured: Charlie Munger; Credit: Bloomberg<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

2. Build your board with people you admire. Davis recalled Munger\u2019s thoughts on choosing directors, saying, \u201cThose people are the face of your clients \u2014 and keeping people in front of you that you...<\/p>\n","protected":false},"author":1,"featured_media":21807,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[],"tags":[1],"jetpack_featured_media_url":"https:\/\/blog.lifeinsurance-orleans.ca\/wp-content\/uploads\/2024\/05\/6-lessons-from-charlie-munger-on-investing-and-business.jpg","_links":{"self":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21806"}],"collection":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/comments?post=21806"}],"version-history":[{"count":0,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/posts\/21806\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media\/21807"}],"wp:attachment":[{"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/media?parent=21806"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/categories?post=21806"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.lifeinsurance-orleans.ca\/index.php\/wp-json\/wp\/v2\/tags?post=21806"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}