“I see people rise in life who are not the smartest, sometimes not even the most diligent, but they are learning machines. They go to bed every night a little wiser than they were when they got up, and boy, does that help.”
Charlie Munger
Charlie Munger died last week at the venerable age of 99. For many, he was Warren Buffett’s No. 2 at the powerhouse investment firm Berkshire Hathaway.
But he had far more influence than his investment strategies suggested, and he has helped millions of people, including myself, by sharing simple wisdom.
What still fascinates me about Charlie Munger is how his partnership with Warren Buffett became such a shared success story. Their complementary skills created a synergy that goes beyond mere financial success.
And most of it was by simply following basic rules that you and I can apply today, no matter what industry or walk of life.
Much has been written about Charlie Munger’s approach. So, I won’t belabor it all, but here are three rules that keep me on top of my game and have helped me become a better leader.
1. Be a rational thinker
Commitment to rational thinking is one of Munger’s most celebrated traits. It has also been the toughest to master, as this often felt like going against human nature. It takes much energy to minimize the biases, emotions, and irrational influences that might cloud my judgment. It’s especially true in our world of noise and contradictions.
Yet, forming my beliefs based on logical reasoning, evidence, and thoughtful consideration of relevant information has been the most impactful. Over time, I’ve been coupling it with systems thinking, and a sheer willingness to change my views in the face of new evidence. This became a superpower for effective problem-solving and decision-making.
2 – Seek multi-disciplinary wisdom
Becoming a specialist in sought-after fields helps to get started in life. But, I’ve learned to build knowledge in various disciplines. I’m not an engineer, neither a designer, an operations expert, or a financial guru.
Yet, in my executive roles and as a consultant, I’ve learned to draw insights from all these fields and build credibility to work effectively with each function. There is no need to dig into all the aspects of a discipline, but genuine curiosity about how it operates has made a difference. It helped me establish trust and improved my decision-making abilities.
3 – Learn to be patient
Charlie Munger was a firm believer in the power of patience. It might sound impossible in our societies of instant gratification, but becoming a champion of the longer-term perspective has helped me steer businesses in the right direction.
In other words, I have learned to herald a vision for where our business should go. It also taught me not to be overly discouraged by short-term fluctuations. Of course, the quality of execution and operations is paramount. But, quarterly earnings can only improve if the vision for the business is sound. It’s all a marathon, not a sprint.
The product of rational thinking, wisdom, and patience is sustainable success. And the more complex our environment becomes, the more impactful these three simple principles are.
Thanks to Charlie Munger’s philosophy, I’ve been one of many who could craft successful endeavors. He’ll continue inspiring and guiding us toward whatever version we have of success.