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Charlie Munger, the respected partner of Warren Buffett in the legendary Berkshire Hathaway empire, is approaching a milestone that few achieve —turning 100 years old. With a career spanning over four decades alongside Buffett, Munger has accumulated immense wealth and shared invaluable insights that transcend the realm of finance. As Munger approaches his birthday on New Year’s Day, let’s reflect on some of his wisdom that inspires strivers and investors of all ages.
The Journey to $100,000: In the 1990s, Munger acknowledged the initial struggle of building wealth, stating, “The first $100,00 is a bear, but you gotta do it.” In a world where financial goals seem daunting, Munger’s advice remains relevant — your first significant milestone requires massive action, hard work, and resourcefulness. Whether it means seizing opportunities, outworking your peers, or being frugal, he advocates finding your way to this crucial financial milestone as soon as possible.
Knowing Your Limits: In a Wall Street Journal interview with Jason Zweig, Munger emphasized the importance of self-awareness. He states, “People chronically misappraise the limits of their own knowledge.” This Munger tenet centers on understanding the limitations of one’s competence, a skill he deems more valuable than being brilliant. Recognizing what you don’t know is a helpful compass in business and life.
Seizing Opportunities: Munger believes in seizing the right opportunities as they arise. “The trick in life is when you get the one, or two, or three that your fair allotment for a life is, you’ve got to do something about it.” This sums up Munger’s proactive approach to life, urging us to recognize and act upon the pivotal moments or opportunities that can make a huge difference in our lives.
Constant Self-Improvement: Munger attributes wisdom to avid reading, stating, “In my whole life, I have known no wise people who didn’t read all the time.” It is reported that Buffett and Munger spend 80 percent of their days reading. Charlie also emphasizes the importance of considering opposing arguments, even when they challenge your long-held beliefs. His commitment to lifelong learning is a testament to the role of ongoing self-improvement in personal and professional success.
Investing Insights: Munger simplifies his approach to investing by categorizing opportunities into “three baskets: yes, no, and too tough to understand.” This strategy reflects Munger’s emphasis on clarity and understanding in today’s hyper-complex investing world.
On Aging: “The best armor of old age is a well-spent life perfecting it.” Cheers to Charlie and his century of providing financial wisdom and reminding us that success is not just about wealth but also the wisdom we gain and share along the way.
Eric Tashlein is a Certified Financial Planner Professional and financial advisor with Cambridge Investment Research Advisors, Inc. He can be reached at 800-878-7152. Offices: OES Wealth Partners, 71 Bradley Road Suite 4-A, Madison, CT 06443 & 30 Old King Hwy S, Darien, CT 06820. The information provided is for educational purposes only and doesn’t intend to make an offer or solicitation to sell or purchase any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Be sure to consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.” Advisory Services offered through Investment Advisor Representatives of Cambridge Investment Research Advisors, Inc. Cambridge Investment Research Advisors, Inc, and OES Wealth Partners are not affiliated.
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