he’s an American business magnate lawyer
investor and philanthropist he’s vice
chairman of Berkshire Hathaway the
investment company chaired by Warren
Buffett he has a net worth of 1.3
billion dollars he’s Charlie Munger and
here are his top 10 rules for success
the other great secret is that we’re
good at lifelong learning
Warren is so much better in some ways in
his 70s and 80s and he was younger that
it’s almost awesome weight if you keep
learning all the time you have a huge
advantage and we both just like it and
we have a wonderful group of friends
really wonderful from home we can learn
a lot
well luckily I got at a very early age
the idea that the safest way to try and
get what you want is to try to deserve
what you want it’s such a simple idea
it’s the golden rule so to speak you you
want to deliver to the world what you
would buy if you were on the other end
there is no ethos
in my opinion that is better for any
lawyer or any other person to have by
and large the people who had this ethos
when in life and they don’t win just
money just honors and emollient once
they win the respect the deserve trust
of the people they deal with and there
is huge pleasure in life to be obtained
from getting deserved trust and so and
the way to get it is to deliver what
you’d want to buy if the circumstances
were reversed one of these guys at the
Berkshire meeting from one of the
foreign publications said quite a couple
of guys in a little place in Omaha do so
much better than all these powerful
minds and great institutions and I said
well I think Warren and I know the edge
of our competency better than other
people do and that’s humility and
Umbrella sense
that is a very important thing to know I
say over and over again it’s not a
competency if you don’t know the edge of
it you were a disaster if you don’t know
the edge of your own competency why I’m
frequently says I’d rather deal with the
guy with an IQ of 130 who thinks it’s
125 the guy with like you 180 the thinks
it’s 200 but that second guy will kill
you and and so it is very important to
know the edge of your own competency
it’s not my nature when you get little
surprises as a result of human nature to
spend much time feeling betrayed
I’m always want to just put my head down
on it just so I don’t allow myself to
spend much time ever with any feelings
of betrayal so you’re asking the wrong
person because of a if some flickering
idea like that came to me I’d get rid of
it quickly I don’t like any feeling of
being victimized I think that’s a
counterproductive way to think as a
human being and I am NOT a victim I’m a
survivor I listened in law school when
some wag said a legal mind is a mind
that when two things are all twisted up
together and interacting it’s feasible
to think responsibly about one thing and
not the other well I could see from that
one sentence that that was perfectly
ridiculous and it pushed me further into
my natural drift which was into learning
all the big ideas and all the big
disciplines so I wouldn’t be a perfect
damn fool who was trying to think about
one aspect of something that couldn’t be
removed from the totality of the
situation in a constructive fashion and
what I noted since the really big ideas
carry 95% of freight there wasn’t
all hard for me to pick up all the big
ideas in all the disciplines and make
them a standard part of my mental
routines once you have the ideas of
course they’re no good if you don’t
practice if you don’t practice you lose
it so I went through life constantly
practicing this Malo disciplinary
approach well I can’t tell you what
that’s done for me it’s it’s it’s made
life more fun it’s made me more
constructive it’s maybe more helpful to
others it’s maybe enormous ly rich you
name it that attitude really helps we
have to deal in things that were capable
of understanding and then once we’re
over that filter we have to have a
business with some intrinsic
characteristics that give it a durable
competitive advantage and then of course
we would vastly prefer a management in
place with a lot of integrity and talent
and finally no matter how wonderful it
is it’s not worth an infinite price so
we have to have a price that makes sense
and gives a margin of safety considering
the natural vicissitudes of life that’s
a very simple set of ideas and the
reason that our ideas have not spread
faster is they’re too simple the
professional classes can’t justify their
existence if that’s all I have to say we
have this system where we translate very
trustworthy people and give them
enormous trust and as they practice that
trust they get more confirmed and being
trustworthy and eventually we’ve got
this seamless web of trust which is
incredibly efficient and very useful and
by the way this is not just my doctrine
there’s a doctor in economics that tries
to explain why firms come into existence
and firms come into existence because a
lot of people who trust one another
operating within a firm are more
efficient
than they would be if they were bunch of
independent proprietors I’m really
following a very key idea of the
greatest lawyer of antiquity Marcus tell
us Cicero and Cicero is famous for
saying a man who doesn’t know what
happened before he’s born goes through
life like a child that is a very correct
idea of Cicero’s and he’s right to
ridicule somebody so foolish as not to
know what happened before he was born
but if you generalize Cicero as I think
one should there are all these other
things that you should know in addition
to history and those other things are
the big ideas and all the other desert
ones and it doesn’t help you just to
know them enough so you could prattle
them back on an exam and get an A you
have to learn these things in such a way
with their in a mental lattice work in
your head and you automatically use them
for the rest of your life if you do that
I solemnly promise you that one day
you’ll be walking down the street and
you look to your right and left you
think my heavenly days I’m now one of
the few most competent people of my
whole age covert one and I have not made
our way in life by making successful
macroeconomic predictions and betting on
our conclusions our system is to swim as
competently as we can and sometimes the
tide will be with us and sometimes it
will be against us but by and large we
don’t much bother with trying to predict
the tides because we plan to play for
the game for a long time I recommend to
all of you exactly the same attitude
it’s kind of a snare and a delusion to
outguess macroeconomic cycles very few
people do it successfully and some of
them do it by accident and the game is
that tough why not adopt the other
system of swimming as competently as you
can and figuring that over a long life
you’ll have your share of
good times and bad tides white will have
terrible blows in horrible blows unfair
blows doesn’t matter
and some people recover and others don’t
and and their I think the attitude of
epictetus is the best he thought that
every missed chance in life was an
opportunity to behave well every missed
chance in life was an opportunity to
learn something and that your duty was
not to be submerged in self-pity but to
utilize the terrible blow and I
construct a fish thank you guys so much
for watching I made this video because
Dom aviation channel asked me to so
there’s a famous entrepreneur that you
want me to profile next leave it in the
comments below and I’ll see what I can
do I’d also love to know which of
Charlie Munger’s top 10 rules had an
impact on you the most leave in the
comments below and I’m going to join in
the discussion thank you guys so much
for watching
to believe and I’ll see you soon
investor and philanthropist he’s vice
chairman of Berkshire Hathaway the
investment company chaired by Warren
Buffett he has a net worth of 1.3
billion dollars he’s Charlie Munger and
here are his top 10 rules for success
the other great secret is that we’re
good at lifelong learning
Warren is so much better in some ways in
his 70s and 80s and he was younger that
it’s almost awesome weight if you keep
learning all the time you have a huge
advantage and we both just like it and
we have a wonderful group of friends
really wonderful from home we can learn
a lot
well luckily I got at a very early age
the idea that the safest way to try and
get what you want is to try to deserve
what you want it’s such a simple idea
it’s the golden rule so to speak you you
want to deliver to the world what you
would buy if you were on the other end
there is no ethos
in my opinion that is better for any
lawyer or any other person to have by
and large the people who had this ethos
when in life and they don’t win just
money just honors and emollient once
they win the respect the deserve trust
of the people they deal with and there
is huge pleasure in life to be obtained
from getting deserved trust and so and
the way to get it is to deliver what
you’d want to buy if the circumstances
were reversed one of these guys at the
Berkshire meeting from one of the
foreign publications said quite a couple
of guys in a little place in Omaha do so
much better than all these powerful
minds and great institutions and I said
well I think Warren and I know the edge
of our competency better than other
people do and that’s humility and
Umbrella sense
that is a very important thing to know I
say over and over again it’s not a
competency if you don’t know the edge of
it you were a disaster if you don’t know
the edge of your own competency why I’m
frequently says I’d rather deal with the
guy with an IQ of 130 who thinks it’s
125 the guy with like you 180 the thinks
it’s 200 but that second guy will kill
you and and so it is very important to
know the edge of your own competency
it’s not my nature when you get little
surprises as a result of human nature to
spend much time feeling betrayed
I’m always want to just put my head down
on it just so I don’t allow myself to
spend much time ever with any feelings
of betrayal so you’re asking the wrong
person because of a if some flickering
idea like that came to me I’d get rid of
it quickly I don’t like any feeling of
being victimized I think that’s a
counterproductive way to think as a
human being and I am NOT a victim I’m a
survivor I listened in law school when
some wag said a legal mind is a mind
that when two things are all twisted up
together and interacting it’s feasible
to think responsibly about one thing and
not the other well I could see from that
one sentence that that was perfectly
ridiculous and it pushed me further into
my natural drift which was into learning
all the big ideas and all the big
disciplines so I wouldn’t be a perfect
damn fool who was trying to think about
one aspect of something that couldn’t be
removed from the totality of the
situation in a constructive fashion and
what I noted since the really big ideas
carry 95% of freight there wasn’t
all hard for me to pick up all the big
ideas in all the disciplines and make
them a standard part of my mental
routines once you have the ideas of
course they’re no good if you don’t
practice if you don’t practice you lose
it so I went through life constantly
practicing this Malo disciplinary
approach well I can’t tell you what
that’s done for me it’s it’s it’s made
life more fun it’s made me more
constructive it’s maybe more helpful to
others it’s maybe enormous ly rich you
name it that attitude really helps we
have to deal in things that were capable
of understanding and then once we’re
over that filter we have to have a
business with some intrinsic
characteristics that give it a durable
competitive advantage and then of course
we would vastly prefer a management in
place with a lot of integrity and talent
and finally no matter how wonderful it
is it’s not worth an infinite price so
we have to have a price that makes sense
and gives a margin of safety considering
the natural vicissitudes of life that’s
a very simple set of ideas and the
reason that our ideas have not spread
faster is they’re too simple the
professional classes can’t justify their
existence if that’s all I have to say we
have this system where we translate very
trustworthy people and give them
enormous trust and as they practice that
trust they get more confirmed and being
trustworthy and eventually we’ve got
this seamless web of trust which is
incredibly efficient and very useful and
by the way this is not just my doctrine
there’s a doctor in economics that tries
to explain why firms come into existence
and firms come into existence because a
lot of people who trust one another
operating within a firm are more
efficient
than they would be if they were bunch of
independent proprietors I’m really
following a very key idea of the
greatest lawyer of antiquity Marcus tell
us Cicero and Cicero is famous for
saying a man who doesn’t know what
happened before he’s born goes through
life like a child that is a very correct
idea of Cicero’s and he’s right to
ridicule somebody so foolish as not to
know what happened before he was born
but if you generalize Cicero as I think
one should there are all these other
things that you should know in addition
to history and those other things are
the big ideas and all the other desert
ones and it doesn’t help you just to
know them enough so you could prattle
them back on an exam and get an A you
have to learn these things in such a way
with their in a mental lattice work in
your head and you automatically use them
for the rest of your life if you do that
I solemnly promise you that one day
you’ll be walking down the street and
you look to your right and left you
think my heavenly days I’m now one of
the few most competent people of my
whole age covert one and I have not made
our way in life by making successful
macroeconomic predictions and betting on
our conclusions our system is to swim as
competently as we can and sometimes the
tide will be with us and sometimes it
will be against us but by and large we
don’t much bother with trying to predict
the tides because we plan to play for
the game for a long time I recommend to
all of you exactly the same attitude
it’s kind of a snare and a delusion to
outguess macroeconomic cycles very few
people do it successfully and some of
them do it by accident and the game is
that tough why not adopt the other
system of swimming as competently as you
can and figuring that over a long life
you’ll have your share of
good times and bad tides white will have
terrible blows in horrible blows unfair
blows doesn’t matter
and some people recover and others don’t
and and their I think the attitude of
epictetus is the best he thought that
every missed chance in life was an
opportunity to behave well every missed
chance in life was an opportunity to
learn something and that your duty was
not to be submerged in self-pity but to
utilize the terrible blow and I
construct a fish thank you guys so much
for watching I made this video because
Dom aviation channel asked me to so
there’s a famous entrepreneur that you
want me to profile next leave it in the
comments below and I’ll see what I can
do I’d also love to know which of
Charlie Munger’s top 10 rules had an
impact on you the most leave in the
comments below and I’m going to join in
the discussion thank you guys so much
for watching
to believe and I’ll see you soon
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