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Charlie Munger left us on November 28, 2023 and from Economía Ilustrada we want to pay tribute to him with five drops of his economic and vital wisdom. On another occasion we will review his beginnings as a lawyer, his first steps in real estate investment, his association with Warren Buffet at Berkshire Hathaway, his philanthropic activity and details of his life.
But today we are going to leave you with five reflections on how to progress in life on a personal level, with new habits that will lead us to professional success and financial independence. Before you start, don't forget to subscribe to the channel, share it with a friend or family member who may need financial advice, and LIKE the video.
And if any of those reflections by Mr. Charlie Munger leave you thinking, leave us a comment. And if you have another favorite quote from Charlie Munger, also leave us a comment to make a second part with five more tips. Let's start! The first lesson that Charlie Munger leaves us is that of wisdom. And one of his most iconic phrases is: Dedicate each day to trying to be a little wiser than you were when you woke up.
In all his talks he stressed the importance of continuous learning, not only in youth, but also at all stages of life. To, in addition to achieving success in life, enjoy a young brain, the broader the learning, the broader your view of the world will be. On the other hand, the world is in constant motion.
New technologies appear every year in our lives and continuous learning eliminates that resistance to change, since our curiosity is trained to embrace novelty. Charlie Munger and Warren Buffett have been by far the most successful investors of the 20th century and so far in the 21st century. And they achieved this thanks to being open to change.
To learn, to improve. Another phrase that Charlie Munger leaves us with about the importance of constantly cultivating oneself to be successful in life is: Those who continue learning will continue to rise in life. Do you aspire to a better life? Then you need to be a person with more knowledge, since the more you know, the more value you will contribute to your work or your venture.
We continue with another lesson for personal development, which is to exploit your abilities. You will do better if you have a passion for something you have skills in. If Warren had dedicated himself to ballet, no one would have heard of him. Self-help books and mugs with motivational phrases have done a lot of harm.
“Pursue your dreams” is a phrase that can help you if your dreams are aligned with your abilities. If you sing worse than a hoarse cat and want to be a tenor at Scala in Milan. We're sorry, but you're not going to make it. Maybe you are a very good storyteller or you are very good at cooking or science, you love teaching, accounting or making designs or technology.
Whatever it is, focus on exploiting that talent to turn it into a profession that allows you to achieve all the life goals you set for yourself. Finding a way in which your talent can provide great value in the production system will allow you to improve that talent until you find excellence and excellence.
it is always paid. About productivity. Charlie Munger left us this teaching. People who multitask at a very high price. It is a constant among the most successful and influential people in the world. Focus on a task to be able to delve into all the details of that task and do it in the most efficient time.
Being involved in several tasks at the same time disperses our field of attention and makes us less effective when it comes to finishing all the tasks and we may lose quality time engaged in minor tasks. Charlie Munger develops that thought. They think they are being super productive and I think that when you multitask, you don't have a lot of time to go deep into any topic.
You're giving the world an advantage that you shouldn't be giving it , and pretty much everyone is falling for that mistake. Look at this generation, with all their electronic devices and multitasking. I can assure you less success than Warren Buffett, who only focuses on reading. We have all lost and lose quality time, distracted by social media notifications and messaging apps.
Limit the time you use your phone and tablet and go back to writing in a notebook or reading a physical book. Many studies have concluded that they activate more regions of the brain. Many schools that initially chose to educate with tablets and electronic devices. They are returning to physical formats since they are less distracting and promote language, memory and fine motor skills.
About his investment method, Charlie Munger tells us: It is better to buy a wonderful company at a normal price than a normal company at a wonderful price. Charlie Munger's investment strategy, along with his partner Warren Buffett, was always to invest in great companies with solid numbers, analyzing them in depth and holding that investment for decades to maximize the return on that investment.
If you are going to invest in a business or in company shares, you always have to carefully analyze where to put the money, because the most important thing when investing is not to lose money. Charlie always looked for spectacular companies that had a lot of value for customers and that were also at moderate or even low prices.
One of his maxims was always to invest in businesses that he could understand. That is why it is not surprising that the companies in which Hathaway has invested are among the most famous in the world, such as Coca-Cola, Apple, American Express, Kraft-Heinz, Chevron, Visa, MasterCard, Bank of America, Amazon, among others.
many others. His life philosophy was always to invest in a few very solvent companies, with very solid numbers. And to invest you have to have a lot of patience. The real money is not in buying and selling, but in waiting. Charlie Munger invested in stocks that, in addition to growing in value, also provided annual dividends.
Dividend-paying stocks are stocks where the investor receives an annual percentage per share that is usually paid quarterly. For example, there are stocks that give very high dividends, but their value per share continues to decrease. Others give a moderate or low dividend, but in which their value per share has an upward trend and a growing dividend.
For example, in the United States Stock Market there are stocks called dividend aristocrats that have given a growing dividend over the last 25 years. And there are also other so-called dividend kings, which have given a growing dividend over the last 50 years. Additionally, you can choose to collect that dividend money in cash to the account or use the “DRIP”, Dividend Reinvestment Plan, or Dividend Reinvestment Plan that automatically allows the purchase of a percentage of that share, depending on the number of shares that they possess themselves.
If we excluded our 15 best investments, we would have obtained results that were average for the sector. The key to our success was not hyperactivity, but patience. You stay true to your principles and when opportunities present themselves, you take advantage of them with determination. Charlie was never a friend of diversification, since he had a lot of confidence in the company he was going to invest in having studied it in depth.
And then he invested for the long term, since the value of a stock fluctuates and no one knows what day of the year it will rise. And if you don't hold that stock strong over time, you lose that potential gain. And to finish, we leave you with a bonus thought. The best thing a human being can do is help another human being, to know more.
And that's what we do here. Contribute our grain of sand to spread the word of the economy, of personal and family finances, to make all these financial topics more accessible and, as far as possible, incorporate them into your life. Charlie Munger was one of the best investors in history and surely by applying some of his thoughts to our lives, we can have a more comfortable future.
If any of these phrases have made you reflect or you have any other of your favorites, leave us a comment and above all, subscribe to the channel, give it a giant Like and share this video with any friend or family member who you think will benefit from the teachings. by Don Charlie Munger. Thank you very much and see you in a new Illustrated Economy video.
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