Warren Buffett’s partner Charlie Munger’s thoughts on successful investment practise

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Warren Buffett, the world’s most significant investor, added two short sentences to Charlie Munger’s list that have been his decision-clinchers for decades, “Warren, think more about it. You’re smart, and I’m right.”

Warren Buffett talked about his long-time friend and business partner, Charlie Munger, in his annual letter to the investors that was published along with Berkshire Hathaway’s annual report. Warren Buffett listed a few of Munger’s thoughts. He advised investors, “Find a very smart high-grade partner, preferably slightly older than you and then listen very carefully to what he says.”

Here is Charlie Munger’s list of thoughts that are lauded by Warren Buffett

1. The world is full of foolish gamblers who will not do as well as the patient investor.

2.  If you don’t see the world as it is, it’s like judging something through a distorted lens.

3. All I want to know is where I will die, so I’ll never go there. And a related thought: Early on, write your desired obituary – and then behave accordingly.

4. If you don’t care whether you are rational, you won’t work on it. Then you will stay irrational and get lousy results.

5. Patience can be learned. A huge advantage is having a long attention span and the ability to concentrate on one thing for a long time.

6. You can learn a lot from dead people. Read of the deceased you admire and detest.

7. Don’t bail away in a sinking boat if you can swim to one that is seaworthy.

8. A great company keeps working after you are not; a mediocre company won’t do that.

9. Warren and I don’t focus on the froth of the market. We seek out good long-term investments and stubbornly hold them for a long time.

10. Ben Graham said, “Day to day, the stock market is a voting machine; in the long term, it’s a weighing machine.” If you keep making something more valuable, some wise person will notice it and start buying.

11. There is no such thing as a 100% sure thing when investing. Thus, the use of leverage is dangerous. A string of wonderful numbers times zero will always equal zero. Don’t count on getting rich twice.

12. You don’t need to own many things to get rich.

13. You have to keep learning if you want to become a great investor. When the world changes, you must change.

14. Warren and I hated railroad stocks for decades, but the world changed, and finally, the country had four huge railroads of vital importance to the American economy. We were slow to recognise the change, but better late than never.

Warren Buffett concluded it by adding two short sentences by Charlie Munger that have been his decision-clinchers for decades, “Warren, think more about it. You’re smart, and I’m right.” Warren Buffett added that he never had a phone call with Charlie Munger without learning something.

Source: Buffetts Letters

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