Here are ten wise investment sayings and pieces of advice from Charlie Munger, the renowned investor and Vice Chairman of Berkshire Hathaway:
- “It’s not supposed to be easy. Anyone who finds it easy is stupid.”
- Munger emphasizes that successful investing requires hard work, discipline, and patience. It’s not something that can be achieved effortlessly.
- “The big money is not in the buying and selling, but in the waiting.”
- Munger highlights the importance of patience in investing. Holding onto investments over the long term often yields the greatest returns.
- “Invert, always invert: Turn a situation or problem upside down. Look at it backward.”
- This advice encourages investors to think critically and consider the opposite of their assumptions to avoid mistakes and uncover better opportunities.
- “The best thing a human being can do is to help another human being know more.”
- Munger believes in the value of lifelong learning and the importance of sharing knowledge with others, which can lead to better investment decisions.
- “It’s 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 suggests that avoiding major mistakes and sticking to simple, sound principles is often more effective than trying to outsmart the market.
- “The iron rule of life is that only 20% of the people can be in the top fifth.”
- This statement serves as a reminder that success in investing, like in other areas of life, is competitive, and not everyone can outperform the market.
- “A great business at a fair price is superior to a fair business at a great price.”
- Munger advocates for investing in high-quality businesses, even if they are not the cheapest, rather than focusing solely on low prices.
- “You must know the big ideas in the big disciplines and use them routinely—all of them, not just a few.”
- Munger stresses the importance of multidisciplinary thinking. Successful investing requires knowledge across various fields, not just finance.
- “The world is full of foolish gamblers, and they will not do as well as the patient investor.”
- He advises against speculation and urges investors to focus on long-term, value-driven strategies rather than quick, risky bets.
- “Acknowledging what you don’t know is the dawning of wisdom.”
- Munger highlights the importance of humility in investing. Recognizing the limits of your knowledge can prevent costly mistakes and lead to better decisions.
These pieces of wisdom reflect Munger’s pragmatic, disciplined, and thoughtful approach to investing, which has contributed to his long-term success.