Charlie Munger's advice for a career | Priyanka Pani posted on the topic | LinkedIn (2024)

𝗠𝘆 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗽𝗵𝗶𝗹𝗼𝘀𝗼𝗽𝗵𝘆 𝗶𝘀 𝘀𝗵𝗮𝗽𝗲𝗱 𝗯𝘆 𝗪𝗮𝗿𝗿𝗲𝗻 𝗕𝘂𝗳𝗳𝗲𝘁𝘁 but there is a lot of Charlie Munger in there too.In 2008, when I started studying the nitty-gritty of value investing and stock market, one name that always popped up alongside Buffett was of Charlie Munger.At first, I ignored him.Thinking of him as another protege of Buffett, who got to work with him too.Just like Buffett was to Benjamin Graham.Initially he was his best student and then he took over Graham's clients as Graham recommended Buffett a lot.But as time passed, I realized that Munger to Buffett was like a Yin to his Yang.As after Graham, Munger was the one who had shaped Buffett's investment philosophy the most.So rather than being a protege, Munger was like a friend who also doubled down as the voice of reason for Buffett.And since Buffett is more diplomatic in his words, Munger was his correct anti-thesis. Too blunt in his assessment of the situation and of people, more often than not.And as I realized this, I knew I had to consider views from both of them and not just from Buffett.So, here are 11 of my most favorite life advice from Munger -1. 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.3) Work only with people you enjoy.2. Whenever you think something or some person is ruining your life, it's you. A victimization mentality is so debilitating.3. Opportunity comes to the prepared mind.4. 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.5. You're not going to get very far in life based on what you already know. You're going to advance in life by what you're going to learn after you leave here.6. It’s not greed that drives the world, but envy.7. In my whole life, I have known no wise people who didn't read all the time - none ... ZERO.8. Acknowledging what you don't know is the dawning of wisdom.9. Investing is where you find a few great companies and then sit on your ass.10. The secret to happiness is to lower your expectations. ...that is what you compare your experience with. If your expectations and standards are very high and only allow yourself to be happy when things are exquisite, you'll never be happy and grateful. There will always be some flaw. But compare your experience with lower expectations, especially something not as good, and you'll find much in your experience of the world to love, cherish and enjoy, every single moment.11. Show me the incentive and I will show you the outcome.Today as Charlie Munger is no longer with us, his words and action will continue to inspire many.-#charliemunger #warrenbuffet #lifeadvice #stockmarket

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Warren Buffett, the Oracle of Omaha, is a man revered for his unparalleled investment acumen and unwavering commitment to value investing principles. Over the years, we've immersed ourselves in his business decisions, gleaning invaluable insights into the world of finance and wealth creation. Here are ten timeless lessons we've learned from Warren Buffett that have profoundly shaped ourapproach to personal finance and wealth creation: 1. Margin of Safety 🦺Buffett emphasizes the concept of a margin of safety, a buffer between the intrinsic value of an investment and its purchase price. This margin of safety protects investors from unforeseen events and market fluctuations.2. Seek Intrinsic Value 🏆Buffett's investment strategy revolves around identifying companies with intrinsic value, meaning their underlying worth exceeds their current market price. He believes in purchasing these undervalued companies and holding them for the long term, allowing their inherent value to manifest.3. Circle of Competence ⭕️Buffett advocates investing in companies you understand, within your circle of competence. He believes in thoroughly researching and analyzing potential investments before making a decision.4. Emotional Discipline 👨🏫Buffett stresses the importance of emotional discipline in investing. He advises against impulsive decisions driven by fear or greed, emphasizing rational analysis and a long-term perspective.5. Embrace Long-Term Investing 🛣️Buffett famously espouses a long-term investment philosophy, emphasizing the power of compounding and the importance of patience. He encourages investors to focus on the intrinsic value of companies rather than short-term market fluctuations.6. Diversification 👀While Buffett favors concentrated investing, he also recognizes the importance of diversification. He suggests holding a portfolio of undervalued companies from different industries to mitigate risk.7. Frugality and Living Below Means 🤝💹Buffett is a proponent of frugality and living below your means. He believes in avoiding unnecessary expenses and prioritizing savings and investments.8. Invest in Yourself ✨Buffett emphasizes the importance of continuous learning and personal development. He encourages individuals to invest in their knowledge and skills to enhance their earning potential.9. Patience and Perseverance😇Buffett's investment success is rooted in patience and perseverance. He understands that wealth creation is a long-term endeavor.10. The Power of Compound Interest🤩Buffett highlights the power of compound interest. He encourages individuals to start investing early and harness the power of compounding to achieve long-term financial goals.By following us, you can do the same. Share this post with your friends who love financial content.#warrenbuffett #timelybills

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"Be Fearful When Others Are Greedy and Greedy When Others Are Fearful" - Warren Buffett's Investment AdviceWarren Buffett, one of the world's most successful investors, is famous for his simple yet powerful advice. One of his most well-known quotes is, "Be fearful when others are greedy and greedy when others are fearful." This idea has helped many people navigate the ups and downs of the stock market and is especially useful in today's uncertain financial times.What the Quote MeansBuffett's quote means that you should be cautious when everyone else is buying stocks (because they might be overpriced) and look for buying opportunities when everyone else is selling (because there might be bargains). In other words, don't follow the crowd blindly.The Role of Emotions in InvestingFear and greed are strong emotions that influence how people invest. When the economy is doing badly, fear makes people sell their stocks, which can cause prices to drop. On the other hand, when the economy is doing well, greed makes people buy more stocks, which can drive prices up.Buffett's advice is to stay calm and think long-term. By ignoring the crowd's emotions, you can find good investment opportunities that others might miss.Learning from HistoryBuffett has used this strategy many times. For example, during the 2008 financial crisis, when many people were selling their stocks in a panic, Buffett's company, Berkshire Hathaway, invested in companies like Goldman Sachs and General Electric. These investments paid off well when the market recovered.How to Use This Advice Today?In today's market, which is full of uncertainty due to various global issues, Buffett's advice is still very relevant. Here are some tips to apply:1. Do Your Homework: Learn about the companies you want to invest in. Good research can help you spot real opportunities. 2. Think Long-Term: Don't worry too much about short-term ups and downs. Focus on how your investments will do over the long haul.3. Diversify: Spread your money across different types of investments to reduce risk.4. Stay Calm: Stick to your investment plan and don't make decisions based on fear or greed.Warren Buffett's quote, "Be fearful when others are greedy and greedy when others are fearful," is great advice for anyone looking to invest wisely. By staying calm and thinking for the long term, you can find opportunities in the market that others might miss. Following this advice can lead to successful investing, just as it has for Buffett throughout his remarkable career.

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Do you also feel like to start investing but don't know from where to kick start your journey?well, here are my personal favourite 5 book recommendations that you can read to be a value investor.1. THE INTELLIGENT INVESTOR BY BENJAMIN GRAHAM:👉 Benjamin Graham is also known as the father of value investing.And his book, “The Intelligent Investor” is considered the bible of the investment world.👉 The book was published originally in 1949 and it is a value investing guide for a layman. 👉 The book is full of fundamental lessons one needs to learn before investing rationally.2. ONE UP ON THE WALL STREET BY PETER LYNCH: 💫 Peter lynch is a legendary investor from fidelity investments and he was the manager of the magellan fund there during 1977-1990. 💫 During this period he averaged a 29.2 annual return and grew the fund from 18 million dollars to 14 billion dollars. No wonder the book has sold more than 1 million copies worldwide. 3. VALUE INVESTING AND BEHAVIOURAL SCIENCE BY PARAG PARIKH:⭕ The book contains pearls of wisdom, great insights, and compelling concepts. ⭕ The book focuses on the Indian stock market, and each chapter is explained using Indian stocks. It is an antidote to investor anxiety and a guide to sane and safe investment decisions. ⭕ A great piece of advice from the book "When others are greedy, be fearful, and when others are fearful, be greedy."4.COMMON STOCKS AND UNCOMMON PROFITS BY PHILIP. A. FISHER:✅ After Benjamin Graham, if Warren Buffett gives the most credit to anyone, it is Philip A. Fisher.Warren Buffett has said that 85% of his investment style was influenced by Benjamin Graham and 15% by Fisher.✅ According to Fisher, we should keep in mind 2 points to generate good wealth in the stock market:The first point is patience.The second point is that if we are doing the same like others then we are doing wrong, that is, we should stay away from the herd mentality.5. THE EDUCATION OF A VALUE INVESTOR BY GUY SPIER: 🏅Guy Spier paid $650,000 for a lunch with Warren Buffett. Spier credits Buffett as a silent mentor who changed his life, influencing his investing career.🏅Get a mentor, alive or dead; Spier mimicked Buffett's actions and thinking.🏅 Avoid debt as it hinders rational decision-making during market crises.🏅 Create your own focused environment, like Spier's move to Switzerland, to avoid distractions.🏅 In investing, be inactive; Spier follows the rule of not trading stocks during market hours.🏅Keep investment details private to stay rational and avoid commitment biases.which book would you like to read?#business #finance #stockmarket #books #reading #caaspirants #personalfinance #content #investing #valueinvesting

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CHARLIE MUNGER AND INVESTINGMunger is known for his self-taught, multidisciplinary approach to investing. Like Buffett, he draws from fields as varied as chemistry, physics, and psychology to lead him toward wise investment decisions. Both Munger and Buffett are suspect of all of the fancy formulas used in academia and insist that you do not need all of these fancy formulas to be a successful investor. Munger’s method is called “Focus Investing.” But he’s given it a snappier title: “Sit on Your Butt Investing.” Here is Munger explaining this approach during the 2000 Berkshire Hathaway shareholders’ meeting: “Well, I agree that all intelligent investing is value investing. You have to acquire more than you really pay for, and that is a value judgment. But you can look for more than you are paying for in a lot of different ways. You can use filters to sift the investment universe. And if you stick with stocks that can’t possibly be wonderful to just put away in your safe deposit box for 40 years, but are underpriced, then you have to keep moving around all the time.As they get closer to what you think the real value is, you’ve got to sell them, and then find others. And so, it is an active kind of investing.” Buffett and Munger criticize investment philosophies that emphasize portfolio diversification. Instead, they invest most of their capital in a few well-run companies that meet their criteria for an investment, rather than trying to predict the future based on fads. Value investing is easy to describe: Invest in assets that are undervalued and be patient. But it takes real discipline to implement. The core of it is to keep the process simple. Avoid bureaucracy. Their corporate office in Omaha counts just 25 employees. In Berkshire’s equity portfolio, Apple alone comprised 50% of its size or 25% of its overall market capitalization. The top five holdings constituted over 75% of the equity portfolio, even though Berkshire owned over 40 stocks. Their investment process avoids complex algorithms and sophisticated models. “Neither Warren nor I have ever used any fancy math in business, and neither did Ben Graham who taught Buffett. Everything I have ever done in business could be done with the simplest algebra & geometry and addition, multiplication and so forth.”I have a long chapter on Charlie Munger in my 2023 National Award-Winning book titled “WARREN BUFFETT: INVESTOR AND ENTREPRENEUR” published by Columbia Business School Publishing and translated into 13 languages, https://lnkd.in/g5JnFTfPRobyn Massey Cayden Chang Brian Burgess, CFP® Stefan Prelog Dr.Hardik Modi Kangqi Xiang Sydney Weathers Heajin Hong Santosh Sirur #warrenbuffett #charliemunger #money #invest #people #work #business #satisfaction #happiness #book #partnerships #berkshirehathaway #investments #mistakes #podcast #university #college #students #highereducation #wealth #retirement #financialfreedom #valueinvesting

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CHARLIE MUNGER AND INVESTINGMunger is known for his self-taught, multidisciplinary approach to investing. Like Buffett, he draws from fields as varied as chemistry, physics, and psychology to lead him toward wise investment decisions. Both Munger and Buffett are suspect of all of the fancy formulas used in academia and insist that you do not need all of these fancy formulas to be a successful investor. Munger’s method is called “Focus Investing.” But he’s given it a snappier title: “Sit on Your Butt Investing.” Here is Munger explaining this approach during the 2000 Berkshire Hathaway shareholders’ meeting:“Well, I agree that all intelligent investing is value investing. You have to acquire more than you really pay for, and that is a value judgment. But you can look for more than you are paying for in a lot of different ways. You can use filters to sift the investment universe. And if you stick with stocks that can’t possibly be wonderful to just put away in your safe deposit box for 40 years, but are underpriced, then you have to keep moving around all the time.As they get closer to what you think the real value is, you’ve got to sell them, and then find others. And so, it is an active kind of investing.” Buffett and Munger criticize investment philosophies that emphasize portfolio diversification. Instead, they invest most of their capital in a few well-run companies that meet their criteria for an investment, rather than trying to predict the future based on fads. Value investing is easy to describe: Invest in assets that are undervalued and be patient. But it takes real discipline to implement. The core of it is to keep the process simple. Avoid bureaucracy. Their corporate office in Omaha counts just 25 employees. In Berkshire’s equity portfolio, Apple alone comprised 50% of its size or 25% of its overall market capitalization. The top five holdings constituted over 75% of the equity portfolio, even though Berkshire owned over 40 stocks. Their investment process avoids complex algorithms and sophisticated models. “Neither Warren nor I have ever used any fancy math in business, and neither did Ben Graham who taught Buffett. Everything I have ever done in business could be done with the simplest algebra & geometry and addition, multiplication and so forth.”I have a long chapter on Charlie Munger in my 2023 National Award-Winning book titled “WARREN BUFFETT: INVESTOR AND ENTREPRENEUR” published by Columbia Business School Publishing and translated into 13 languages. https://lnkd.in/g5JnFTfPRobyn Massey Ed Y. Li Cayden Chang Brian Burgess, CFP® Stefan Prelog Dr.Hardik Modi Kennen Xiang Sydney Weathers Heajin Hong Santosh Sirur #warrenbuffett #charliemunger #money #invest #people #work #business #satisfaction #happiness #book #partnerships #berkshirehathaway #investments #mistakes #podcast #university #college #students #highereducation #wealth #retirement #financialfreedom #valueinvesting

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"Greed and Panic: Navigating the Emotional Rollercoaster of Investing"💠 Investing can feel like a wild ride at a carnival – exhilarating highs followed by stomach-churning lows. Two powerful emotions often fuel this rollercoaster: 1️⃣ greed and 2️⃣ panic. 💠 Greed whispers promises of quick riches, while panic screams to sell everything and run for cover. But how can you navigate these emotional extremes and make sound investment decisions? Let's buckle up and explore:🔴 The Seduction of Greed:Greed can be a cunning foe. It often manifests as:❌ Chasing Hot Trends: The allure of "getting rich quick" can lead you to blindly follow market hype and invest in trendy stocks without proper research.❌ Overconfidence: A string of early successes can inflate your ego, making you underestimate risks and overestimate your abilities.❌ Ignoring Risk Tolerance: The insatiable desire for more can cause you to stray from your established risk tolerance, potentially jeopardizing your financial security.🔴 The Crippling Grip of Panic:Panic, greed's nemesis, can be equally destructive. It can arise from:❌ Market Volatility: Sudden market downturns can trigger fear, leading to impulsive decisions to sell investments at a loss.❌ Negative News: A constant barrage of negative news headlines can amplify fear and create a sense of impending doom, regardless of the actual economic situation.❌ Loss Aversion: The pain of losing money can feel much more intense than the pleasure of gaining it. This can lead to panic selling and missed opportunities.✳ Taming the Emotional Beasts:So, how do you keep these emotions from derailing your investment journey? Here are some tips:✔ Know Yourself: Understand your risk tolerance and emotional triggers. This self-awareness will help you identify when greed or fear are influencing your decisions.✔ Develop a Plan: Create a well-defined investment strategy aligned with your goals and risk tolerance. This will act as a roadmap during moments of emotional turmoil.✔ Stay Informed, Not Inundated: Educate yourself about different investment strategies, but avoid being overwhelmed by constant financial news.✔ Focus on the Long-Term: Don't get fixated on short-term market fluctuations. Remember, investing is a marathon, not a sprint.✔ Seek Professional Guidance: Consider consulting a qualified financial advisor who can provide personalized advice and help you maintain a rational perspective.✅ BistInvest Tips: ✔ Invest with confidence! Self-awareness, discipline, and a long-term view can help you manage emotions and make sound investment decisions aligned with your goals. Take control, breathe deep, and enjoy the journey!www.BistInvest.com#BistInvest #Investment #Panic #InvestmentPlanning #InvestmentRollercoaster #EmotionalInvesting #GreedVsPanic #SmartInvestor #FinancialDiscipline #KnowYourRiskTolerance #LongTermGoals #StayInformed #AvoidFearMongering

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50 Investing Laws1.Common sense is not so common2.Greed often overcomes common sense3.Greed kills4.Fear and greed are stronger than long-term resolve5.There is no vaccine for being overleveraged6.When you combine ignorance and leverage, you get pretty scary results7.Operate only in your area of competence8.There is always more than one co*ckroach in the kitchen9.Over long periods of time, equities will rise in value10.Long investing generates wealth11.Short selling can protect wealth12.Be patient and learn how to sit on your hands13.Try to get a little smarter every day and read as much as possible14.Investors often think too little and calculate too much15.Security Analysis by Benjamin Graham is the most important book ever. 16.History is a great teacher17.History rhymes18.What we have learned from history is that we haven't learned from history19.Investment wisdom is always 20/20 when seen in the rear-view mirror20.Avoid first-level thinking. Embrace second-level thinking21.Think for yourself22.In investing, that which is profitable is most often not exceedingly profitable at the end23.Avoid herd behavior24.The more often stupidity is repeated, the worse25.Always have more questions than answers26.You must have accounting and finance knowledge27.The stock market is full of individuals who know the price of everything and the value of nothing28.Directional call buying, when consumed as a steady appetite, is a mug's game and often a path to the poorhouse29.Never buy the stock of a company whose CEO loves expensive toys30.Avoid "The Noise"31.Reversion to the mean is a strong market influence32."When you reach success station, get off!33.Try to buy stocks at cheap valuation levels34.Being right or wrong is less important than how much you make when you're right and how much you lose when you're wrong35.Too much of a good thing can be wonderful36.New paradigms are a rare occurrence37.Price goes before the fall38.Consider opposing investment views and cultivate curiosity39.Maintain a healthy level of skepticism40.In investing, nothing is certain41.Always control your emotions42."Rate of change"' is the most important statistic in investing43.In evaluating the attractiveness of a stock, always consider upside reward versus downside risk44.Always stick to your investing strategy45.Know what you own46.Immediately sell a stock on the announcement of an accounting irregularity47.Always follow the cash(flow)48.Replace the word EBITDA with BS earnings49.Favor doing stock research over spending time on sites like r/wallstreetbets50.Find a good mentor and pay attention to what they're doing50 Laws of investing__📚 You liked this? Sign up to my newsletter and receive 50 investing visuals like this in 1 handy PDF: https://lnkd.in/epJNgDvz

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50 Investing Laws1.Common sense is not so common2.Greed often overcomes common sense3.Greed kills4.Fear and greed are stronger than long-term resolve5.There is no vaccine for being overleveraged6.When you combine ignorance and leverage, you get pretty scary results7.Operate only in your area of competence8.There is always more than one co*ckroach in the kitchen9.Over long periods of time, equities will rise in value10.Long investing generates wealth11.Short selling can protect wealth12.Be patient and learn how to sit on your hands13.Try to get a little smarter every day and read as much as possible14.Investors often think too little and calculate too much15.Security Analysis by Benjamin Graham is the most important book ever. 16.History is a great teacher17.History rhymes18.What we have learned from history is that we haven't learned from history19.Investment wisdom is always 20/20 when seen in the rear-view mirror20.Avoid first-level thinking. Embrace second-level thinking21.Think for yourself22.In investing, that which is profitable is most often not exceedingly profitable at the end23.Avoid herd behavior24.The more often stupidity is repeated, the worse25.Always have more questions than answers26.You must have accounting and finance knowledge27.The stock market is full of individuals who know the price of everything and the value of nothing28.Directional call buying, when consumed as a steady appetite, is a mug's game and often a path to the poorhouse29.Never buy the stock of a company whose CEO loves expensive toys30.Avoid "The Noise"31.Reversion to the mean is a strong market influence32."When you reach success station, get off!33.Try to buy stocks at cheap valuation levels34.Being right or wrong is less important than how much you make when you're right and how much you lose when you're wrong35.Too much of a good thing can be wonderful36.New paradigms are a rare occurrence37.Price goes before the fall38.Consider opposing investment views and cultivate curiosity39.Maintain a healthy level of skepticism40.In investing, nothing is certain41.Always control your emotions42."Rate of change"' is the most important statistic in investing43.In evaluating the attractiveness of a stock, always consider upside reward versus downside risk44.Always stick to your investing strategy45.Know what you own46.Immediately sell a stock on the announcement of an accounting irregularity47.Always follow the cash(flow)48.Replace the word EBITDA with BS earnings49.Favor doing stock research over spending time on sites like r/wallstreetbets50.Find a good mentor and pay attention to what they're doing50 Laws of investingFollow for more such tips and writeups !#investing #powerofcompounding #investmentstrategies #investmenttips

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CHARLIE MUNGER AND INVESTINGMunger is known for his self-taught, multidisciplinary approach to investing. Like Buffett, he draws from fields as varied as chemistry, physics, and psychology to lead him toward wise investment decisions.Both Munger and Buffett are suspect of all of the fancy formulas used in academia and insist that you do not need all of these fancy formulas to be a successful investor.Munger’s method is called “Focus Investing.” But he’s given it a snappier title: “Sit on Your Butt Investing.” Here is Munger explaining this approach during the 2000 Berkshire Hathaway shareholders’ meeting:“Well, I agree that all intelligent investing is value investing. You have to acquire more than you really pay for, and that is a value judgment. But you can look for more than you are paying for in a lot of different ways. You can use filters to sift the investment universe. And if you stick with stocks that can’t possibly be wonderful to just put away in your safe deposit box for 40 years, but are underpriced, then you have to keep moving around all the time.As they get closer to what you think the real value is, you’ve got to sell them, and then find others. And so, it is an active kind of investing.”Buffett and Munger criticize investment philosophies that emphasize portfolio diversification. Instead, they invest most of their capital in a few well-run companies that meet their criteria for an investment, rather than trying to predict the future based on fads.Value investing is easy to describe: Invest in assets that are undervalued and be patient. But it takes real discipline to implement. The core of it is to keep the process simple. Avoid bureaucracy. Their corporate office in Omaha counts just 25 employees. In Berkshire’s equity portfolio, Apple alone comprised 50% of its size or 25% of its overall market capitalization. The top five holdings constituted over 75% of the equity portfolio, even though Berkshire owned over 40 stocks.Their investment process avoids complex algorithms and sophisticated models. “Neither Warren nor I have ever used any fancy math in business, and neither did Ben Graham who taught Buffett. Everything I have ever done in business could be done with the simplest algebra & geometry and addition, multiplication and so forth.”I have a long chapter on Charlie Munger in my 2023 National Award-Winning book titled “WARREN BUFFETT: INVESTOR AND ENTREPRENEUR” published by Columbia Business School Publishing and translated into 13 languages: https://lnkd.in/g5JnFTfPRobyn Massey Cayden Chang Brian Burgess, CFP® Stefan Prelog Dr.Hardik Modi Kennen Xiang Sydney Weathers Heajin Hong Santosh Sirur#warrenbuffett #charliemunger #money #invest #people #work #business #satisfaction #happiness #book #partnerships #berkshirehathaway #investments #mistakes #podcast #university #college #students #highereducation #wealth #retirement #financialfreedom #valueinvesting

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