Failure to handle psychological denial is a common way for people to go broke: you have made an enormous commitment to something. You have poured effort and money in. And the more you put in, the more that the whole consistency principle makes you think, "Now it has to work. If I put in just a little more, then it will work."

Charlie Munger

Categorized in : Thinking Commitment People

I never allow myself to have an opinion on anything that I don't know the other side's argument better than they do.

Charlie Munger

argument opinion sides

Move only when you have an advantage. It's very basic. You have to understand the odds and have the discipline to bet only when the odds are in your favor.

Charlie Munger

discipline odds moving

Show me the incentive and I will show you the outcome

Charlie Munger

incentives show-me outcomes

I did not succeed in life by intelligence. I succeeded because I have a long attention span.

Charlie Munger

succeed attention long

Acknowledging what you don't know is the dawning of wisdom.

Charlie Munger

knows

It takes character to sit there with all that cash and do nothing. I didn't get to where I am by going after mediocre opportunities.

Charlie Munger

investing opportunity character

A lot of success in life and business comes from knowing what you want to avoid: early death, a bad marriage, etc.

Charlie Munger

etc knowing want

A few major opportunities, clearly recognizable as such, will usually come to one who continuously searches and waits, with a curious mind, loving 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

odds opportunity past

How do you compete against a true fanatic? You can only try to build the best possible moat and continuously attempt to widen it.

Charlie Munger

moats fanatics trying

Our biggest mistakes, were things we didn't do, companies we didn't buy.

Charlie Munger

biggest-mistake company mistake

Hard work, honesty, if you keep at it, will get you almost anything.

Charlie Munger

investing honesty hard-work

Learn how to ignore the examples from others when they are wrong, because few skills are more worth having.

Charlie Munger

investing skills example

The more hard lessons you can learn vicariously rather than through your own hard experience, the better.

Charlie Munger

hard-lessons hard lessons

You must force yourself to consider opposing arguments. Especially when they challenge your best loved ideas.

Charlie Munger

best-love challenges ideas

Three rules for a career: 1) Don’t sell anything you wouldn’t buy yourself; 2) Don’t work for anyone you don’t respect and admire; and 3) Work only with people you enjoy.

Charlie Munger

three careers people

The best thing a human being can do is to help another human being know more.

Charlie Munger

helping-others inspirational knowledge

All I want to know is where I’m going to die, so I’ll never go there

Charlie Munger

dies knows want

To me, it's obvious that the winner has to bet very selectively. It's been obvious to me since very early in life. I don't know why it's not obvious to very many other people.

Charlie Munger

winner investing people

If we've been a little more successful than other people, is because we always realised that the school of life was always open, and if you were not learning more you are falling behind.

Charlie Munger

successful school fall

Your life must focus on the maximization of objectivity.

Charlie Munger

objectivity insightful focus