Charlie Munger always uses the same 10-step approach to make investment decisions.
I'll teach it to you in 2 minutes:
I'll teach it to you in 2 minutes:
1. Measure risk
All investment evaluations should begin by measuring risk, especially reputational.
All investment evaluations should begin by measuring risk, especially reputational.
2. Be independent
Only in fairy tales are emperors told they're naked.
Only in fairy tales are emperors told they're naked.
3. Prepare ahead
The only way to win is work, work, work and hope to have a few insights.
The only way to win is work, work, work and hope to have a few insights.
4. Have intellectual humility
Acknowledging what you don't know is the dawning of wisdom.
Acknowledging what you don't know is the dawning of wisdom.
5. Analyze rigorously
Use effective checklists to minimize errors and omissions.
Use effective checklists to minimize errors and omissions.
6. Allocate assets wisely
Proper allocation of capital is an investor's number one job.
Proper allocation of capital is an investor's number one job.
7. Have patience
Resist the natural bias to act.
Resist the natural bias to act.
8. Be decisive
When proper circumstances present themselves, act with decisiveness and conviction.
When proper circumstances present themselves, act with decisiveness and conviction.
9. Be ready for change
Accept un-removable complexity.
Accept un-removable complexity.
10. Stay focused
Keep it simple and remember what set out to do.
Keep it simple and remember what set out to do.
That's it for today.
We had a blast in Omaha this weekend. We'll share everything we've learned in 1 PDF.
Sign up here to receive it: eepurl.com
We had a blast in Omaha this weekend. We'll share everything we've learned in 1 PDF.
Sign up here to receive it: eepurl.com
Loading suggestions...