The start of a new year - a time filled with resolutions and intentions.
A time to contemplate change and become a better version of yourself.
At year’s end, I conducted a personal audit of my life from various vantage points, including personal relationships, professional accomplishments, financial wellness, and my health.
By reflecting on the areas in which I succeeded and those where I fell short, I could better understand what I wanted and needed to change.
I outlined new ways to invest in myself and my life.
While considering these ‘investments,’ I reflected on the late great Charlie Munger, the long-time vice chairman of Berkshire Hathaway and business partner of Warren Buffet, the famed Oracle of Omaha. Munger passed away on November 28th at the age of 99.
While Munger was a financial investment legend, he also shared poignant and sage advice about life.
His recent passing inspired me to reexamine some of the wisdom he passed on during his 99 years.
Here’s my Charlie Munger take on Investing in Yourself
1. Learn, learn, learn.
“I constantly see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than when they got up and, boy, does that help — particularly when you have a long run ahead of you.”
-Charlie Munger
My father, an accomplished dental surgeon, taught me this lesson, and Charlie Munger reinforced it. Most nights before he went to bed, I found my father reading the latest issue of one of the many medical publications he subscribed to. I asked him why he dedicated so much time to learning even though he was already accomplished in his career.
He explained that he was accomplished because he learned every day. He never stopped asking questions, fine-tuning his skills, or learning new ones.
He was a master of learning. Munger was the same.
I knew I wasn’t the smartest kid in my class or my family, but I saw the benefits of learning and knew I could follow in my father’s footsteps in some small way.
Most importantly, learning happens outside of the educational system every day. The pandemic showed us that remote education and work are more than possible.
Learning happens:
By listening to others with a different perspective or opinion.
By watching those around you.
By opening yourself up to new experiences.
By stepping outside of your comfort zone.
By trying something new.
Learning is a key to success and something we all can do.
2. Read. Read. Read.
“One of the reasons that I was as economically successful as I was is because I read so damn much all my life — starting when I was six years old. I don’t know how to get smart without reading a lot.”
- Charlie Munger
Just as Munger read his whole life, so did my father and the many wise, successful people I’ve met—the one common denominator - a commitment to read. Whether fiction or non-fiction, reading leads to new worlds and ideas; it raises questions and answers others.
For years, I read every medical article related to Lyme disease I could get my hands on. Some took time to digest and understand. When I didn’t understand a concept, I read more. When there were unanswered questions, I asked those who may have the answers.
When I couldn’t find the answers, I wondered why.
The stack of books by my bed helps me answer the many whys.
Some I’m dying to read; others I know I should read.
Those who read learn. And those who learn read. Asking why is icing on the cake.
3. Keep it Simple.
“There is an old two-part rule that often works wonders in business, science, and elsewhere: (1) Take a simple, basic idea and (2) Take it very seriously.”
- Charlie Munger
I love this lesson. Simple ideas, taken seriously.
While I’ve listened to and read many of the speeches Munger gave during his lifetime, this idea always stuck with me.
When speaking with executives or business school graduates, Munger often discussed the importance of multidisciplinary mental models, mathematical models, and theories of probability. Concepts that may not resonate with most.
Yet his two-part rule of a simple, basic idea taken seriously is easily applied by anyone, regardless of their education.
It applies to financial investing as well as life.
Sometimes, we overcomplicate thoughts and decisions. We overanalyze simple ideas. Yet, if we focus on the basics and take them seriously, i.e., study and learn as we go, we can become experts in a variety of methodologies.
I knew little about neuroplasticity when looking for alternative therapies to help treat neurological systems. But I kept it simple.
I learned that neuroplasticity, in its simplest terms, is when the brain is rewired to function in a different way.
Did I need a degree in neurology to understand that? No, but I needed to focus on the basics and take it seriously. I read books, researched new therapies, and explored ways to connect the dots.
Learn. Read. Keep it Simple.
4. Surround yourself with people you can trust.
This last lesson is one that I learned on my own, through trial and error, but while brushing up on my Munger lessons, I came across the following quote and realized how in tune Munger was in helping people invest in their futures.
“Never wrestle with a pig because if you do, you’ll both get dirty, but the pig will enjoy it.”
-Charlie Munger
This gem from Munger is about dealing with people you can trust versus those you can’t.
Before Munger met Buffett, he was a very successful lawyer. He probably didn’t need Buffett and vice versa, but they understood the importance of strong and trustworthy partners- a trait I believe made both men more successful than had they never met.
And for those who trusted and followed Munger and Buffett’s investing advice, rest assured they’ve also enjoyed the benefits of that trusted relationship.
As you head into 2024, I hope you consider these four lessons I learned from Charlie Munger and find ways to apply them to your life.
Happy New Year, and thank you for being a part of The Power of Change.
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Until next week, be mindful and stay safe.
Excellent article, Tracy. Thanks for sharing the four valuable lessons.
The first two, learn and read I have always done. When it comes to keeping it simple, I'm learning, for some reason I used to complicate things, and I'm surrounded with people I trust, after countless disappointments.