🪦 RIP Charlie Munger: Investment Mogul & Visionary Thinker 💰

It’s been a sad week in the world of investing this week.

On Tuesday, Charlie Munger, the long-time right-hand man of legend Warren Buffet, passed away in his hospital bed at the grand old age of 99.

Warren Buffet, super investor and chairman of Berkshire Hathaway, is the one who gets 99% of the airtime and column inches, but Charlie was an incredible mind, and without his help, Warren would never have made certain changes to his business model that made him one of the world’s richest men.

And what a model that has been! At his death, Charlie was worth $2.5 billion, and Warren, still alive and kicking at 93 years old, is worth a reported $120 billion!

If that teaches you anything, it shows that you don’t need to be a number one to make big money. Sure, Warren may have a lot more than Charlie, but I don’t think many of you reading this would turn your nose up at a $2.5 billion net worth!

You don’t need to own a business. You don’t even need to control a business. You just need to be in the right vehicle. There is huge earning potential in being the perfect co-pilot in the right vehicle. Most people get hung up on being the CEO when they would be much better off realising that they are a terrible number 1, but would be a much better number 2. (or even 3, 4 or 5.)

So what else can we learn from Charlie Munger? What were some of his greatest ideas and quotes?

I like this a lot. The more life experience you get, the more business situations you find yourself in. You learn that you don’t need to have some magic trick or incredible set of skills that other people don’t have in order to be hugely successful. You just need to avoid doing stupid things. costly mistakes that take you backwards.

It’s the same in sports, too. I often find myself in strategy conversation with my padel tennis partner when we are behind in a match. We start by talking through all kinds of ideas and strategies that we think we should implement. But then we always end up coming back to the same place—just stop giving points away! You don’t need to win the points; you just need to stop losing them.

Just be consistent in everything and let it compound over time. Success is then inevitable.

The problem with having a little success is that it goes to your head. As an entrepreneur, you think that you know everything and that you can solve every problem, run every business.

I have been very guilty of this myself over the years, entering businesses I knew nothing about and getting some very quick and expensive lessons. We all have some key areas that we are incredibly competent in—or if you don't, then you need to learn and find some! But when you have them, stick to them. Use them to your advantage, and don’t get bored and start deviating. It’s a guaranteed route to ruin.

Have the strength and humility to put your hands up and say that you don’t know something or understand a particular sector. It’s better to admit a lack of knowledge than to go broke!

If you follow me, then you know my views on learning. I am obsessed with constantly learning and studying new things, by whatever method that may be. Books, courses, videos, podcasts—it doesn’t matter.

It is criminal how the vast majority of people switch off from ever learning anything new at the point they leave school or university. Then they wonder why their earnings stagnate or why they aren’t where they want to be in life. 

The more you learn, the more you earn. Charlie spent most of his life simply reading, studying, and absorbing information, and then only acting on very few occasions when the right opportunities presented themselves.

When I was about 24, I remember a guy pitching me a deal where I was to invest £11,000, and within about 2 weeks it would have become £50,000 in a risk-free scheme that was so convoluted I can’t even remember what it was! But what I do remember, like yesterday, was how sick I felt after giving the guy the £11K and realising it was never coming back again!

Why did I do it? Greed. There is no other answer. We are led by greed—the desire to make quick, easy money. And it doesn’t matter how implausible the schemes seem—we ignore them all out of desperation for them to be true!

In today’s world of social media, it is impossible not to see video after video of people getting richer faster than you are, and spending money that you haven’t got yet. It is likely that most of these people haven’t got it either and are just flexing for the instagram, but some people are likely making a lot of money and doing it very quickly. There is always someone killing it in a new market, whatever that may be.

Don’t get distracted by this and let it take you off your course. Stick to your plan. There will be a new ‘next big thing’ every few months, but it will be a very select few people who make money from it. If you are always chopping and changing, then you will never have time for your knowledge and successes to compound.

It was hard to pick just five quotes from Charlie; he really has said so many incredible things over the years. But the ones above are pretty universal to most areas of life and business, rather than specific investing advice.

But if you want to learn more about this incredible man and his theories, then there are plenty of great books out there. Do as Charlie says: Keep learning and keep rising!

Check out:

• Damn Right! By Janet Lowe

• On Success. By Charlie Munger

• Charlie Munger: The Complete Investor By Tren Griffin

I hope you enjoy this week’s newsletter. As always, I love your feedback. Reply to the email or message me on social media. What do you want more of? What could we be doing better?

The huge statistic of a 3,787,464% return for shareholders from 1964 through 2022 is a testament to Munger's strategic brilliance. This achievement underscores Munger's long-term value to the company and the substantial wealth he helped generate for shareholders. His expertise, combined with Buffett's, has shaped Berkshire Hathaway into a financial powerhouse.

Despite his scepticism towards artificial intelligence and cryptocurrencies, Munger is known for his straightforward and often colourful language in expressing his views. In a casual remark, he compared trading crypto assets like bitcoin to 'somebody else trading turds and you decide I can’t be left out.'

Munger's unfiltered whit adds a splash of humour to the world of finance. Given his longevity and success, Munger was often asked questions about how to live a happy and fulfilling life, regardless of success. Over the years, Munger showed the ability to answer that question both seriously and with a streak of humour.

'The first rule of a happy life is low expectations.'

Another week of Sauna Strategy Sessions – where business meets sweat and success! In these sessions, I'm dishing out some top-notch tips and killer advice on all things business strategy. But, it's not just me talking at you; I'm here to answer YOUR burning questions. Whether you're hungry to learn something new, need a fix for a business headache, or just want to dive deeper into something I've said, these sessions are all about catering to your business needs.

So, let's sweat it out, this week's focus: NETWORKING. Let's go:

Munger met Buffett at a dinner party... Networking! The key is to network and build relationships with your prospects and customers, just as you would when trying to connect with someone you fancy! It's simple, really. Just like in personal relationships, genuine connections in the business world are built on trust, understanding, and shared interests. Engage with your audience, listen to their needs, and respond authentically. Much like keeping a romance alive, successful networking involves investing time and effort.

The power of networking extends far beyond just professional connections; it's about cultivating meaningful relationships that go beyond transactional exchanges. By actively engaging with your prospects and customers, you not only create a solid foundation for trust but also open doors to new opportunities. So, consider each interaction as a chance to create a lasting impression, much like a memorable date.

Like building a romantic relationship, attend industry events as if they were special occasions, connect on social platforms with the enthusiasm of sending a heartfelt message, and participate in conversations that resonate with your passions. Remember, the strength of your network determines your future success.

P.S…… I know some of you are big fans of this newsletter because you email me and tell me about it. But you still aren’t sharing it with your friends! So use the link below to spread the word and you’ll qualify for some goodies soon!

Ta.