Yep...........................

 

The big money is not in the buying and the selling, but in the waiting.

-Charlie Munger

As we've always said, real estate investing is a get-rich-slowly scheme

Incentives matter...................

 

We should also heed the general lesson implicit in the injunction of Ben Franklin in Poor Richard’s Almanack: “If you would persuade, appeal to interest and not to reason.” This maxim is a wise guide to a great and simple precaution in life: Never, ever, think about something else when you should be thinking about the power of incentives.

-Charlie Munger, from his The Psychology of Human Misjudgment

On coping properly.......................

 

When I started law practice, I had respect for the power of genetic evolution and appreciation of man’s many evolution-based resemblances to less cognitively-gifted animals and insects. I was aware that man was a “social animal,” greatly and automatically influenced by behavior he observed in men around him. I also knew that man lived, like barnyard animals and monkeys, in limited-size dominance hierarchies, wherein he tended to respect authority and to like and cooperate with his own hierarchy members while displaying considerable distrust and dislike for competing men not in his own hierarchy.

But this generalized, evolution-based theory structure was inadequate to enable me to cope properly with the cognition I encountered. I was soon surrounded by much extreme irrationality, displayed in patterns and subpatterns. So surrounded, I could see that I was not going to cope as well as I wished with life unless I could acquire a better theory-structure on which to hang my observations and experiences. 

-Charlie Munger, from the opening of his speech, The Psychology of Human Misjudgment

Good question.......................

 

The idea of caring that someone is making money faster [than you] is one of the deadly sins.  Envy is a really stupid sin because it's the only one you could never possibly have any fun at.  There's a lot of pain and no fun.  Why would you want to get on that trolley?

-Charlie Munger

It's simple, really...................

 

Experience tends to confirm a long-held notion that being prepared, on a few occasions in a lifetime, to act promptly in scale, in doing some simple and logical thing, will often dramatically improve the financial results of that lifetime.  A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind that loves diagnosis involving multiple variables.  And then all that is required is a willingness to bet heavily when the odds are extremely favorable, using resources available as a result of prudence and patience in the past.

-Charlie Munger

curious..................

 

I was born curious.  If that doesn't work for you, figure out your own damn system.

-Charlie Munger

objectivity.......................

 

       The life of Darwin demonstrates how a turtle may outrun the hares, aided by extreme objectivity, which helps the objective person end up like the only player without blindfold in a game of pin-the-donkey.     

      If you minimize objectivity, you ignore not only a lesson from Darwin but also one from Einstein.  Einstein said that his successful theories came from: 'Curiosity, concentration, perseverance and self-criticism.'  And by self-criticism he meant the testing and destruction of his own well-loved ideas.

-Charlie Munger, as excerpted from this speech

One of the few valuable comparisons.........

 

All intelligent people should think primarily in terms of opportunity cost. When deciding whether to do something compare it with the best opportunity you have.

-Charlie Munger, from here

incentives........................

 

Show me the incentives, and I’ll tell you the outcome.

-Charlie Munger

simple.......................

 

You don't have to hire out your thinking if you keep it simple.

-Charlie Munger

Self-help............................

 

"Whenever you think that some situation or some person is ruining your life, it is actually you who are ruining your life.  It is such a simple idea.  Feeling like a victim is a perfectly disastrous way to go through life.  If you just take the attitude that however bad it is in any way, it's always your fault and you just fix it the best you can - the so-called "iron prescription" - I think that really works.

-Charlie Munger, as channeled by Peter Bevelin

a certain kind of temperament........

 A lot of people with high IQs aren’t great investors because they have terrible temperaments. That is why having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.

-Charlie Munger, as cut-and-pasted from here

Granny's Rule.......................

 Granny’s Rule, to be specific, is the requirement that children eat their carrots before they get dessert. And the business version requires that executives force themselves daily to first do their unpleasant and necessary tasks before rewarding themselves by proceeding to their pleasant tasks. 

-Charlie Munger

an interesting collection..................

  I sought good judgment mostly by collecting instances of bad judgment, then pondering ways to avoid such outcomes. 

-Charlie Munger