This is part 2 on The Tao of Charlie Munger Book Review, here is PART 1

Charlie Munger is one of the most brilliant thinkers of this century. Here are quotes from other respectable people in the world.

Bill Gates: "He is truly the broadest thinker I have ever encountered."

Warren Buffet: "He comes equipped for rationality… I would say that to try and typecast Charlie in terms of any other human that I can think of, no one would fit. He's got his own mold.”

Now let's get back to some of Charlie's greatest quotes:

Quote #1

“Mimicking the herd invites regression to the mean.”

Follow the crowd and you get what you see. This is exactly how I always have lived my life. I do the opposite of what the average person is doing. I quit my job, work at all times now on my projects, start my week on Sunday, Workout on weekends, everything I can to change the status quo.

Quote #2

“Life, in part, is like a poker game, wherein you have to learn to quit sometimes when holding a much-loved hand—you must learn to handle mistakes and new facts that change the odds.”

When things are not working out, no matter how much you love them, you must learn to let go when appropriate. This occurred recently when I decided to quit day trading. I was so in love, it made it very difficult and time consuming.

Quote #3

When asked about his success, Munger says, “I succeeded because I have a long attention span.”

Focus is so important to success because everything is mindset control. I use to be the worst student growing up, never listened, always fooled around. But this taught me the importance of it and by my mid twenties I turned into a machine nobody thought I would ever. Now they are seeing the benefits of what focus does and it does not matter your faults or mistakes, you can make it up.

Quote #4

“Smart people aren’t exempt from professional disasters from overconfidence.”

_Never get too overconfident or cocky because it only takes one time for you to destroy your finances or life. This can occur when you are on a "hot" streak. Be careful.

Quote #5

“At Berkshire there has never been a master plan. Anyone who wanted to do it, we fired because it takes on a life of its own and doesn’t cover new reality. We want people taking into account new information.”

This is one I need to ponder but it is how I've always lived my life. Just seem that many do not take this path and have a master plan?

Quote #6

“Know the big ideas in the big disciplines and use them routinely—all of them, not just a few.”

Model yourself around the best, all the time.

Quote #7

“There’s no way that you can live an adequate life without many mistakes. In fact, one trick in life is to get so you can handle mistakes. Failure to handle psychological denial is a common way for people to go broke.”

_This one makes me happy because I have failed more than probaley anyone. I was never good in school and I get myself into trouble often. These all teach me some of my most valuable lessons. Me doing what I want and failing by being stubborn has been a blessing in disguise.*

Quote #8

“We all are learning, modifying, or destroying ideas all the time. Rapid destruction of your ideas when the time is right is one of the most valuable qualities you can acquire. You must force yourself to consider arguments on the other side.”

This is all about being open minded and also to let go of ideas and people when it is useful to do so.

Quote #9

“Oh, it’s just so useful dealing with people you can trust and getting all the others the hell out of your life. It ought to be taught as a catechism. Wise people want to avoid other people who are just total rat poison, and there are a lot of them.”

_This is so true and was hard at first as you are use to the people in your life. Once I removed the negative people and things in my life, the energy and focus went up 5x. Now the trouble is, sometimes there are new beneficial and meaningful people in your life but let some rat poison on you.... We must move forward and find better more adequate people for ourselves.

Quote #10

"In my whole life, I have known no wise people who didn't read all the time. None, Zero. You'd be amazed at how much Warren and I read. My children laugh at me. They think I am a book with legs coming out of it.

This is why Charlie has such great insight and intellect. He reads hours everyday, for his whole life! I never did this until about a year or two ago. My life and intellect is changing dramatically! It is so exciting!!!

There are many more amazing quotes from Charlie I may just have to do a part 3!

Hope you enjoyed this post and insight from one of the greatest investors and speakers of all time.

@bitdollar