Life Golden Rules

Life is too short to be wasted

A day without learning is a day wasted. There is so much to learn and so little time to learn it. - Albert Einstein

Charlie Munger Life Golden Rules

On curiosity

“If you’re going to live a long time, you have to keep learning. What you formerly knew is not enough. If you don’t adapt, you’re like a one-legged man in an ass-kicking contest.”

On risk-taking

“What you have to learn is to fold early when the odds are against you, or if you have a big edge, back it heavily because you don’t get a big edge often. Opportunity comes, but it doesn’t come often, so seize it when it does come.”

On fairness

“The safest way to try to get what you want is to try to deserve what you want. It’s such a simple idea. It’s the golden rule. 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’ve had this ethos win in life, and they don’t win just money and honours. They win the respect, the deserved trust of the people they deal with. And there is huge pleasure in life to be obtained from getting deserved trust.”

On patience

“The big money is not in the buying or selling, but in the waiting.”

On envy

“Here’s one truth that perhaps your typical investment counsellor would disagree with: if you’re comfortably rich and someone else is getting richer faster than you by, for example, investing in risky stocks, so what?! Someone will always be getting richer faster than you. This is not a tragedy.”

On thinking

“The ability to destroy your ideas rapidly instead of slowly when the occasion is right, is one of the most valuable things. You have to work hard on it.

“Ask yourself what are the arguments on the other side. It’s bad to have an opinion you’re proud of if you can’t state the arguments for the other side better than your opponents. This is a great mental discipline.”

On wisdom

“People are trying to be smart. All I am trying to do is not to be idiotic, but it’s harder than most people think.”

On reading

“In my whole life, I have known no wise people (over a broad subject matter area) who didn’t read all the time – none, zero ... You’d be amazed at how much Warren reads – at how much I read. My children laugh at me. They think I’m a book with a couple of legs sticking out.”

On how to live

“Let me use a little inversion now. What will really fail in life? What do we want to avoid? Some answers are easy. For example, sloth and unreliability will fail. If you’re unreliable it doesn’t matter what your virtues are, you’re going to crater immediately. So, faithfully doing what you’ve engaged to do should be an automatic part of your conduct.”

“Hard work, honesty, if you keep at it, will get you almost anything.”

On investing

“You’re looking for a mispriced gamble. That’s what investing is. And you have to know enough to know whether the gamble is mispriced. That’s value investing.”

On building Berkshire Hathaway

“In its early Buffett years, Berkshire had a big task ahead: turning a tiny stash into a large and useful company. And it solved that problem by avoiding bureaucracy and relying much on one thoughtful leader for a long, long time as he kept improving and brought in more people like himself.

“Compare this to a typical big-corporation system with much bureaucracy at headquarters and a long succession of CEOs who come in at about age 59, pause little thereafter for quiet thought, and are soon forced out by a fixed retirement age.”

Warren Buffett Golden Life and Investment Rules

What happen if investment to lose

The most important thing to do if you find yourself in a hole is to stop digging.

Investments can go bad, and when they do, it's best to bow out and stop throwing money at them. It is a difficult decision to make, but accepting the loss will prove to be more beneficial financially.

# The Market can price things go wrong
    Price is what you pay. Value is what you get.

# High returns with low risk is the key
    Risk comes from not knowing what you are doing.

Think long term over short term investment

If you aren't thinking about owning a stock for 10 years, don't even think about owning it for 10 minutes.

Our favorite holding period is forever.

Do not take yearly results too seriously. Instead, focus on four or five-year averages.

Other Life Golden Rules

Repect

Respect is way more important than being liked. Show people what you're make of and how hungry you are to be the best in your field. No shame in losing, but show people that you will never give up, and you will give it everything to be the best you can be, respect is earned not given.