Lessons to learn from the unique persona of Charlie Munger
"If I have seen further, it is by standing on the shoulder of giants" - Sir Issac Newton.
Charlie Munger was no less than a giant of the investing world. His demise this week marks the end of an era. But it would be unfair to remember the great Munger as only the vice chairman of Berkshire Hathaway and second-in-command to Warren Buffett. Over the years, he has donned many avatars, inspiring millions along the way.
So, paying homage to the investing great, we take a look at the many avatars of Charlie Munger.
He was no professor, but his lectures were a treasure trove of investing knowledge. His speech, titled The Psychology of Human Misjudgment, showcased the rewarding nature of his lectures. The speech covered how human psychology plays into investing decisions. You can watch the full speech here. If you want the quick version, you can read our article on the same.
Of all his qualities, maybe his wit was the most striking. In a field often seen as dry, Munger's clever insights into investing set his lessons apart. The most iconic would be when he called EBITDA "bulls**t" earnings. You must read our story on his many witty quips related to investments and the investing world.
Munger was never one to shy away from pointing out the fallacies inherent within the global financial framework. From cryptos to the new age philosophy of chasing growth no matter the cost, Munger has been a staunch critic of anything that is hazardous to long-term investors. In a 2023 meeting with the UK-based Financial Times, he called out the investment management community and bandied them as clairvoyants.
The sharpshooter investor's wisdom often went beyond the market and ventured into the philosophy of life. Munger was keenly interested in how the majority thinks and reacts to different scenarios.
His interest helped him develop mental models to avoid common investing mistakes. Click here to learn how to train your mind to avoid biases like Charlie Munger.
Munger's teachings have profoundly shaped our perspective over the years. The mentioned works represent our attempt to introduce his long-term approach to wealth building to our readers. Like many of his followers, we feel a deep sense of loss with his passing. But, his philosophies will remain part of our mission to help you become a wiser investor.
Also read: Investing lessons from Buffett and Munger