Munger’s Four Guiding Principles to Becoming an Investment Wizard
July 26, 2023
No one is born an Investment Wizard.
Nature doesplay its part (i.e., Wizards all likely have at least average intelligence), but it is nurture that makes them exceptional investors. You do not need to be a genius to be good at something; you just need to focus and put in the work.
Buffett’s business partner, Charlie Munger, puts it this way: “The only way to win is to work, work, work, work and hope to have a few insights.” Everyone can get lucky and strike a gold mine, but Wizards put in hard work so they can find gold mines over and over again. For you to “own your space,”
Munger advises:
- Constant learning: Be a voracious reader—become wiser every day.
- Ask: If you want to get smart, the question you have to keep asking is, “Why, why, why?”
- Be fluent: Develop fluency in mental models from the major academic disciplines.
- Be prepared: You cannot take advantage of opportunities without preparation
The Wall Street Journal and USA Today bestselling book, The Ten Commandments of Investing discusses Munger’s guiding principles to emphasize the importance of hard work in Commandment Two: Own Your Space.
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