Money Vikings Love Munger
You know we love listening to some Charlie Munger wisdom and have written several articles about the man, the myth and the legend. We even talked about him on one of our podcasts. simple rules for life
And why not? The guy is 99 years old, a billionaire and has lived an extraordinary life. We do not know how many more years of Mungisms we have left.
Here are 6 simple rules for life that Munger has discussed over the years:
1. Don’t have envy
Munger’s first rule for a happy life is to avoid envy of other people. He noted,
“Envy is a really stupid sin because it’s the only one you could never possibly have any fun at.”
He is onto something here. To me, envy makes absolutely no sense at all and it only hurts us. Every person has different challenges and different advantages. Envy is also the opposite of gratitude. A key aspect of True Wealth is developing gratitude for the blessings right before us. simple rules for life
2. Don’t resent others
On a similar note, Munger believes that you shouldn’t resent others if you want to be happy. He stated, “I cannot recommend it [resentment] highly enough to you if you desire misery.”
Resentment in my mind is a simple waste of energy. It puts our precious energy and focus on something that is absolutely non-productive. simple rules for life
3. Stay cheerful
Munger stressed that everyone needs to “stay cheerful in spite of your troubles.” He said, “It’s a wise thing to do.”
Staying cheerful requires letting go of any negative feelings toward others, according to Munger. He asked, “And can you be cheerful when you’re absolutely mired in deep hatred and resentment? Of course you can’t.” simple rules for life
4. Only deal with reliable people
Munger thinks that another important way to live a happy life is to “deal with reliable people.” He said,
“If you’re unreliable, it doesn’t matter what your virtues are, you’re going to crater immediately.”
This echoes what Buffett has stated in the past about Berkshire Hathaway working only with reputable people. The legendary investor once said: “Lose money for the firm, and I will be understanding. Lose a shred of reputation for the firm, and I will be ruthless.”
5. Do what you’re good at
Munger phrased this rule, “Do what you’re supposed to do.” And what are you supposed to do? What you’re good at doing. He noted:
Each of you will have to figure out where your talents lie. And you’ll have to use your advantages. If you try to succeed in what you’re worst at, you’re going to have a very lousy career. I can almost guarantee it.
6. Don’t overspend
It sounds so simple, but I’ve saved the Munger simple rule that’s vital for investors for last: He believes that to live a happy life, you shouldn’t “overspend your income.”
This is critical to living a life of True Wealth. Too much toxic debt weighs on the psyche and drags us down.
Here are some bonus quotes that I love and can make people wealthy in many ways:
- “The big money is not in the buying or selling, but in the waiting.” This quote emphasizes the importance of patience and long-term thinking when it comes to investing. Munger believes that successful investing requires the ability to stay disciplined and wait for the right opportunities to arise.
- “Invert, always invert.” Munger often advocates for the practice of inversion, which involves approaching a problem by thinking about it backward. By considering the opposite perspective, he believes one can gain a clearer understanding of the situation and identify potential pitfalls or alternative solutions.
- “Spend each day trying to be a little wiser than you were when you woke up.” Munger emphasizes the importance of continuous learning and personal growth. He believes that by making a conscious effort to gain knowledge and wisdom each day, individuals can steadily improve themselves and their decision-making abilities.
- “The best thing a human being can do is to help another human being know more.” This quote highlights Munger’s belief in the power of education and sharing knowledge. He views the act of helping others expand their understanding as one of the most valuable contributions a person can make. simple rules for life
- “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.” Munger emphasizes the significance of avoiding mistakes and making rational decisions rather than attempting to showcase excessive intelligence. He believes that by minimizing errors and staying within one’s circle of competence, one can achieve considerable success.simp