1. Invert, Always Invert Instead of asking “How do I succeed?”, ask “What would cause failure?”—then avoid it. This simple mental model eliminates many bad decisions.
📚 2. Build a Latticework of Mental Models Draw ideas from multiple disciplines—economics, psychology, physics—to make better decisions. Munger believed single-track thinking leads to errors.
⏳ 3. Long-Term Orientation Focus on long-term compounding rather than short-term gains. Wealth builds slowly through patience.
💰 4. Buy Wonderful Businesses at Fair Prices Shift from cheap-but-mediocre companies to high-quality businesses with strong fundamentals.
🧾 5. Margin of Safety Always invest with a buffer between price and intrinsic value to protect against mistakes and uncertainty.
🧘 6. Temperament Over IQ Success in investing depends more on discipline, patience, and emotional control than raw intelligence.
🚫 7. Avoid Stupidity Rather Than Seek Brilliance Consistently avoiding big mistakes is more powerful than chasing brilliant ideas.
🔍 8. Circle of Competence Stick to industries and businesses you truly understand. Admit what you don’t know.
📉 9. Be Rational, Not Emotional Ignore market noise, hype, and fear. Make decisions based on logic and evidence.
📊 10. Incentives Drive Behavior Always analyze incentives—people and systems act according to rewards and penalties.
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