Some of my favourite ideas from Charlie Munger

Originally posted on Twitter ^*

Some notable ideas from Charlie Munger^*

1. Avoid dealing with people of questionable character.
2. Remember that just because other people agree or disagree with you doesn’t make you right or wrong—the only thing that matters is the correctness of your analysis and judgment.
3. Mimicking the herd invites regression to the mean (merely average performance).
4. Develop into a lifelong self-learner through voracious reading; cultivate curiosity and strive to become a little wiser every day.
5. More important than the will to win is the will to prepare.
6. Develop fluency in mental models from the major academic disciplines.
7. If you want to get smart, the question you have to keep asking is “Why, why, why?”
8. Intellectual humility: Acknowledging what you don’t know is the dawning of wisdom.
9. Consider the totality of risk and effect; look always at potential second-order and higher-level impacts.
10. “Compound interest is the eighth wonder of the world” (Einstein); never interrupt it unnecessarily.
11. Recognize and adapt to the true nature of the world around you; don’t expect it to adapt to you.
12. Continually challenge and willingly amend your best-loved ideas.
13. Recognize reality even when you don’t like it—especially when you don’t like it.
14. Remember that reputation and integrity are your most valuable assets—and can be lost in a heartbeat.
15. Face your big troubles, don’t sweep them under the rug.
16. Be prepared, disciplined, patient and decisive.

^* All excerpts from the book, Poor Charlie's Almanac.