It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.
CHARLIE MUNGERThere’s no way that you can live an adequate life without many mistakes. In fact, one trick in life is to get so you can handle mistakes. Failure to handle psychological denial is a common way for people to go broke.
More Charlie Munger Quotes
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Stock-picking is like gambling: those who win well, seldom bet, but when they do, they bet heavily.
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All I want to know is where I’m going to die, so I’ll never go there.
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Someone will always be getting richer faster than you. This is not a tragedy.
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Bull markets go to people’s heads. If you’re a duck on a pond, and it’s rising due to a downpour, you start going up in the world. But you think it’s you, not the pond.
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Most people are too fretful, they worry to much. Success means being very patient, but aggressive when it’s time.
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If you want to understand science, you have to understand math. In business, if you’re enumerate, you’re going to be a klutz. The good thing about business is that you don’t have to know any higher math.
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To me, it’s obvious that the winner has to bet very selectively. It’s been obvious to me since very early in life. I don’t know why it’s not obvious to very many other people.
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Intelligent people make decisions based on opportunity costs.
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We have found in a long life that one competitor is frequently enough to ruin a business.
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It’s a good habit to trumpet your failures and be quiet about your successes.
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The big money is not in the buying and selling, but in the waiting.
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There is bound to be a regression toward the mean.
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It’s not greed that drives the world, but envy.
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There are worse situations than drowning in cash and sitting, sitting, sitting. I remember when I wasn’t awash in cash — and I don’t want to go back.
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The average result has to be the average result. By definition, everybody can’t beat the market. As I always say, the iron rule of life is that only 20% of the people can be in the top fifth. That’s just the way it is.
CHARLIE MUNGER