Jeremy Ryan

Today, the world mourns the loss of one of its greatest minds in the world of finance and investing, Charlie Munger. A close partner of Warren Buffett and Vice Chairman of Berkshire Hathaway, Munger was not just an accomplished investor but also a sage with invaluable insights about life, partnerships, and the art of investing. In this blog post, we’ll take a moment to remember Charlie Munger by revisiting some of his best advice and memorable one-liners that have left an indelible mark on the world of finance and beyond.

1. “In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero.”

Charlie Munger understood the power of knowledge and continuous learning. He emphasized the importance of reading extensively and diversely to gain a broader perspective on life and investing. Munger believed that reading was the key to staying informed and making well-informed decisions.

2. “Spend each day trying to be a little wiser than you were when you woke up. Day by day, and at the end of the day – if you live long enough – like most people, you will get out of life what you deserve.”

This quote encapsulates Munger’s philosophy of lifelong learning and personal growth. He encouraged individuals to invest in themselves and strive for incremental improvement each day. Over time, these small steps toward wisdom can lead to significant accomplishments.

3. “The best thing a human being can do is to help another human being know more.”

Munger believed in the power of teaching and sharing knowledge. He saw it as a noble endeavor and a way to make the world a better place. This perspective highlights the importance of mentorship and spreading wisdom to uplift others.

4. “In the world of business, the people who are most successful are those who are doing what they love.”

Munger emphasized the importance of passion and enjoyment in one’s work. He believed that when you genuinely love what you do, you are more likely to excel at it and achieve success. This advice encourages individuals to seek out their true passions in life.

5. “The big money is not in the buying and selling… but in the waiting.”

Charlie Munger understood the value of patience and long-term thinking in investing. He emphasized the importance of holding onto quality investments over time, allowing them to compound and grow. This approach has been a cornerstone of his and Warren Buffett’s investment success.

6. “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’s humility and focus on avoiding mistakes rather than seeking brilliance set him apart. He believed that avoiding foolish decisions was often more critical than making complex, intelligent ones. This approach highlights the significance of rational decision-making and risk management.

7. “The safest way to try and get what you want is to try and deserve what you want.”

Munger stressed the importance of ethics and integrity in both personal and professional life. He believed that the most reliable path to success was to be deserving of it through hard work, honesty, and fairness.

8. “It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait.”

Impatience can be an investor’s worst enemy. Munger recognized that the ability to wait for the right opportunities and not be swayed by short-term fluctuations was a hallmark of successful investors.

9. “We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire.”

Munger believed in the importance of adaptability and the willingness to change one’s mind when new information becomes available. This flexibility is crucial in the ever-evolving world of investing.

10. Three rules for a career: 1) Don’t sell anything you wouldn’t buy yourself; 2) Don’t work for anyone you don’t respect and admire; and 3) Work only with people you enjoy.

Charlie Munger’s career advice underscores the significance of integrity, respect, and enjoyment in one’s professional journey. It serves as a compass for making career choices that align with one’s values and aspirations.

Charlie Munger’s wisdom extended far beyond the world of finance. His insights on life, partnerships, and investing continue to inspire and guide people from all walks of life. As we remember this remarkable investor, we can honor his legacy by embracing his advice, seeking knowledge, nurturing our passions, and striving for wisdom and integrity in all our endeavors. Charlie Munger’s words will continue to shape the way we approach life and investing for generations to come.

Want more? Try our Charlie Munger based chatbot below to get more wisdom…

I initiated a new small position in Invesco QQQ Trust (QQQ) at $325.1499. Invesco QQQ Trust is not within our top 15 largest positions at this time.

There are many threats to the market and uncertainty including:

1. Political Uncertainty

The uncertainty within the political arena with global uneasiness with Russia/Ukraine, China and much more. Domestically, the country is very divided and there is pressure for people in power to prove themselves of reelection. There seems to be much disappointment of the current administration which will cause pressure to make drastic moves to improve this. There could be more issues with domestic and international trade.

2. Economic Slowdown

The second threat is an economic slowdown. The US economy has been growing steadily for several years, however there is strong pressure to reduce inflation with higher interest rates which could cause the economy to slow down and therefore sales/profits to decrease.

3. Supply Chain Issues

Since COVID, there has been so much disruption and uncertainty with the supply chain. This is major concern for trying to plan and project future sales which most likely is why many companies are aiming low with targets which is upsetting to many investors.

Despite all this, I believe much of it is already priced in and that the QQQ is good way to put money to work on a broad/diversified basis. The overall market will most certainly be higher than it is now in the next few years. While the market could certainly drop more in the short term. If you have a long term investment horizon, now is a great time to slowly put money to work, while pessimism is really high.

We plan to gradually put more money to work if the market stays at these levels or goes lower.