3 ms·

Warren Buffett and Charlie Munger on how to avoid mistakes in life and business

6 points by mdp2021 4y ago

mdp2021 4y ago
=== Warren Buffett > You should write your obituary and try and figure out how to live up to it > You should never make mistakes that take you out of the game > You should just spend a little bit less than you earn [ - if you] spend a little bit more than you earn then you've got debt, and the chances are you'll never get out of debt (I'll make an exception in terms of a mortgage on your house) ... it's straight out of Ben Franklin > Tom Murphy, the first time I met him, said two things to me: he said, "you can always tell someone to go to hell tomorrow". Well that was great advice then, and think about how greater advice it is when you when you sit down on the computer... [...] And he said, you know, "praise by name, criticize by category" - well, what makes more sense than that? ... You don't need to vilify anybody to make your point > I've never known anybody that was basically kind that died without friends, and I've known plenty of people with money who died without friends - including their family > Tom Murphy Senior, ... I watched him for 50 years: I never saw him do an unkind act. (He didn't seem to have done very many stupid acts either...) I mean, it wasn't that he was not discriminating: he just decided that... that there was no reason to do it. And, wow, what a difference that makes in life === Charlie Munger > Well it's so simple: you spend less than you earn, and invest shrewdly, and avoid toxic people and toxic activities, and try and keep learning all your life etc etc. And do a lot of deferred gratification because you prefer life that way. And if you do all those things you are almost certain to succeed. And if you don't, you're going to need a lot of luck, a lot of luck - and you don't want to need a lot of luck: you want to go into a game where you're very likely to win without having any unusual luck > The toxic people who are trying to fool you or lie to you, or who aren't reliable meeting their commitments: a great lesson of life is get the hell them out of your life. And do it fast! Do it fast
mdp2021 4y ago
By the way: Charlie Munger said something very observant in another part of the meeting ( https://www.youtube.com/watch?v=3y5aNVKVdew https://www.youtube.com/watch?v=3y5aNVKVdew ), > I think a banker should be more like an engineer: he's more like into avoiding trouble than "getting rich" i.e. while not of the profession, he understood - "the engineer is into avoiding trouble" - that a good part of the job is "assuring that things work properly". Sometimes you have to build a spaceship, sometimes the product is that others could keep on working undistracted.
known 4y ago
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6 points by mdp2021 4y ago

mdp2021 4y ago

=== Warren Buffett > You should write your obituary and try and figure out how to live up to it > You should never make mistakes that take you out of the game > You should just spend a little bit less than you earn [ - if you] spend a little bit more than you earn then you've got debt, and the chances are you'll never get out of debt (I'll make an exception in terms of a mortgage on your house) ... it's straight out of Ben Franklin > Tom Murphy, the first time I met him, said two things to me: he said, "you can always tell someone to go to hell tomorrow". Well that was great advice then, and think about how greater advice it is when you when you sit down on the computer... [...] And he said, you know, "praise by name, criticize by category" - well, what makes more sense than that? ... You don't need to vilify anybody to make your point > I've never known anybody that was basically kind that died without friends, and I've known plenty of people with money who died without friends - including their family > Tom Murphy Senior, ... I watched him for 50 years: I never saw him do an unkind act. (He didn't seem to have done very many stupid acts either...) I mean, it wasn't that he was not discriminating: he just decided that... that there was no reason to do it. And, wow, what a difference that makes in life === Charlie Munger > Well it's so simple: you spend less than you earn, and invest shrewdly, and avoid toxic people and toxic activities, and try and keep learning all your life etc etc. And do a lot of deferred gratification because you prefer life that way. And if you do all those things you are almost certain to succeed. And if you don't, you're going to need a lot of luck, a lot of luck - and you don't want to need a lot of luck: you want to go into a game where you're very likely to win without having any unusual luck > The toxic people who are trying to fool you or lie to you, or who aren't reliable meeting their commitments: a great lesson of life is get the hell them out of your life. And do it fast! Do it fast

mdp2021 4y ago

By the way: Charlie Munger said something very observant in another part of the meeting ( https://www.youtube.com/watch?v=3y5aNVKVdew https://www.youtube.com/watch?v=3y5aNVKVdew ), > I think a banker should be more like an engineer: he's more like into avoiding trouble than "getting rich" i.e. while not of the profession, he understood - "the engineer is into avoiding trouble" - that a good part of the job is "assuring that things work properly". Sometimes you have to build a spaceship, sometimes the product is that others could keep on working undistracted.

known 4y ago

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