10 Rules

We often read and hear quotes and commentary from Warren Buffett in the news, media, or from other investors, but seldom do we hear much of anything from Mr. Buffett’s  number one investment sidekick and partner, Charlie Munger.  Today, I’d like to share with you Charlie Munger’s 10 rules for investment success.

1.  Measure Risk

      All investment evaluations should begin by measuring risk; especially reputational risk

2.  Be Independent

      Only in fairy tales are emperors told they’re naked

3.  Prepare Ahead

      The only way to win is to work, work, work, and hope to have a few insights

4.  Have Intellectual Humility

      Acknowledging what you don’t know is the dawning of wisdom

5.  Analyze Rigorously

      Use effective checklists to minimize errors and omissions

6.  Allocate Assets Wisely

      Proper allocation of capital is an investor’s (and CEO’s) No. 1 job !

7.  Have Patience

      Resist the natural human bias to act

8.  Be Decisive

      When proper circumstances present themselves, act with decisiveness and conviction

9.  Be Ready for Change

      Accept complexity that cannot be removed

10. Stay Focused

       Keep it simple and remember what you set out to do

Information Source:  Poor Charlie’s Almanack: The Wit and Wisdom of Charles T. Munger, Expanded 3rd Edition

Blog:  Alfred L. Angelici      http://www.walnuthilladvisorsllc.com

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see my Terms & Conditions page for a full disclaimer.



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