99 Years of Charlie Munger Wisdom in 9 Bullets
In the business world, there’s few people who are held in more rarified air than Charlie Munger.
Known for his investing psychology and work with Warren Buffet, Munger was an unforgettable leader and thinker.
It’s impossible for me to share all of Charlie’s wisdom in one piece.
But here are 9 maxims that embody how Charlie Munger worked, invested, and lived…
The Herd
“Mimicking the herd invites regression to the mean.” — Charlie Munger
This is one of my favorite maxims.
It’s a useful principle in a world where true authenticity is rare.
The problem with not producing work that is 100% authentic to you is that nobody likes it.
What has worked and what will work for the rest of time, is true work.
True work speaks to who you are, how you uniquely operate, and what you stand for. And it has unlimited upside (unlike inauthentic work).
My mom always used to tell me, “Stay true.”
Staying true is one of the most powerful things you can do for yourself.
Just be you, dammit.
Simple Ideas
“Take a simple idea, and take it seriously.” — Charlie Munger
After reading The Founders by Jimmy Soni, one principle stuck out to me — simple ideas are the most defensible and the easiest to grow.
Keeping things simple is easier said than done. But forgetting to keep things simple is a great way to not keep them simple.
In business especially, the simple idea usually wins.
Apple is great for many reasons, but the main reason we use it today is because of its simplicity.
People will pay a premium for simplicity without even knowing it.
This maxim is Charlie’s business advice in a nutshell. Pick something simple you like to work on, and take it seriously for a really long time.
That’s how you produce outsized returns for yourself and your business.
What You Want
“Deserve what you want.” — Charlie Munger
I have a little sister. She’s ten years old (maybe not so little lol).
As a ten year old, she already has more responsibility than I did at her age.
She legit owns a freaking horse.
To be in charge of a BIG animal like that at such a young age is crazy.
But the thing is, she didn’t get the horse handed to her.
She’s wanted to own a horse since she was two years old (the same age I became obsessed with baseball).
For as long as I’ve known her, she’s been working on her riding, taking care of other horses (to prove she’s worthy), and stepping up when the stable needed her.
She didn’t just want the horse. She deserved what she wanted.
It’s fine to want a lot of things in life. After all, there’s a lot of cool stuff out there.
But it’s not okay for what you want and what you deserve, to be unbalanced.
Your work should always out pace what you desire. If you want great things, you need great sacrifice.
That’s how life works.
The Forces
“Understand the forces at play.” — Charlie Munger
Growing up a baseball player (catcher), it was my job to oversee everything on the field.
I knew I had to understand the game better than anyone if I wanted to be successful.
I was never the fastest, I didn’t throw the hardest, have the best swing, or the quickest pop time.
But I did have a knack for the game. And that plays.
It helped me play college baseball. And now I take that same level of preparedness into the business world.
You’d be surprised, but most people in the world are just making shit up as they go.
Munger is reminding us that society’s tendency to improv plays into the hands of the student.
Of the person who is studying their craft.
All Your Life
“Keep learning all your life.” — Charlie Munger
There’s nothing that excites me more than the thought of who I’ll become, what I’ll know, and how much further I’ll be ahead of where I am now.
That’s all driven by learning.
I’m an avid reader, watcher, and listener. I study people. It’s how I’ve become great at many things.
One thing I’ve been working on over the last couple months is graphic design. Specifically, for marketing assets.
I work at a startup, and we’re a small team of four full-time employees. Everyone is wearing a lot of hats.
We only have one designer who focuses on product most of the time. But he steps in to help with marketing assets when needed.
After coming on to the team in 2023, I knew I needed to learn things fast if I wanted to stick around.
So, I started deconstructing some of our designers’ designs. It was how I learned the software, Figma. And how I started creating bad ass visuals like this one.
The point is, you have to keep learning. It’s what will keep you in the game.
And it’s also a great way to preserve your youth.
Delayed Gratification
“Do a lot of delayed gratification.” — Charlie Munger
Getting into the habit of delaying gratification is painful. But necessary.
We live in a world where everything is available to you at the snap of your fingers.
While convenient, it’s dangerous. If you get addicted to having everything right now, you will become incapable of working towards things that can’t be conjured instantly. You know, the good stuff.
One of the traits I embody the most from my father, is his work ethic.
He’s always up early. Learning. Doing something productive. He’s been doing this for my entire life.
To the unexamined eye, you’d think he’s just providing for his family or doing extra work for his job. But there’s a deeper level to it. He’s delaying gratification.
This is because the work doesn’t materialize right away. It manifests itself in a myriad of ways far removed from the moment where it occurred.
My rule of thumb? Do the unappealing thing first. And be constant in doing it.
Help Other Humans
“The best thing a human can do is to help another human know more.” — Charlie Munger
What’s the point of becoming a bad ass if you’re not going to teach others too?!
In college, I opened a gym. I did it initially because I thought it was a cool thing to do, and my friends wanted me to train them.
Little did I realize, the part I grew to love was coaching.
It was my obsession, and still is. It’s also how I got started putting pen to paper and sharing my writing online.
There’s a good chance that if I didn’t start coaching, I wouldn’t be a writer today.
I think more people should coach and write.
It doesn’t really matter what you know, the important part is that there’s someone who needs your help.
That’s worth taking action on.
Excuses
“Nobody gives a shit about an excuse.” — Charlie Munger
You’re saving others time, and yourself the embarrassment by withholding your excuses. It’s a win-win!
Seriously though, excuses suck. Stop that shit.
Blank Spaces
“Do things other people aren’t doing.”
I’m writing a book right now. It has a lot to do with these maxims.
What I saw was an opportunity to do something different. Something that no one else is doing.
So, I’m diving all the way in.
I’m not saying you need to write a book. But you must bet on something.
And the best bets are on yourself and on stuff nobody is doing yet. That’s where the returns live.
All the greatest investors have a way of spotting things before they go big.
You should also get good at this, whether it’s for investing, business, sport, or finding a partner.
One of the best places to be is where no one else is, yet.
Closing Thoughts
These are some of the many maxims Munger embodied during his lifetime.
I’ve loved writing this post and sharing these maxims. If you enjoyed it, comment your favorite or share this post with a friend.