some lessons i learnt from Charlie Munger

1. Be rational and objective

Munger often spoke about the importance of being rational and objective. It will help you in business and investing, but also in other areas of life. Making emotional decisions rarely leads you down the right path.

2. Be a learning machine

Munger viewed education as a moral duty and spent most of his day reading on a variety of subjects including business, history and science. He once joked that his kids thought he was a book with a couple of legs sticking out.

3. Financial freedom is about independence

Thanks to the extreme success of Berkshire Hathaway and his other investments, Munger was among the richest Americans, with his net worth reaching about $2.6 billion this year, according to Forbes, despite already donating much of his wealth to charity.

4. Don’t fall for salesmanship of the investment industry

Munger was not afraid to criticize when he saw misbehavior, and he often turned his attention to the broader investment industry, which he felt didn’t deliver enough value to clients relative to what they charged.

5. The best way to get what you want is to deserve it

A fan of simple ideas, Munger often talked about deserving what you want in life. The best way to find a good spouse is to deserve one, he often said. In business, this translates to working hard and behaving with integrity consistently over time.

6. Concentrate your bets

Diversification is one of the most frequently cited investment principles and for most people is a good approach to follow. But Munger said investors who understand how to analyze and value businesses were crazy to over diversify.

7. Avoid stupidity

Rather than thinking about how to succeed or be happy in life, think about what will make you fail or be miserable. It’s a simple approach, but one people don’t often think of.

8. Pick the right role models

Munger was a big fan of biographies and an admirer of Benjamin Franklin. He was always looking for lessons he could take from someone else’s life and how he could apply them to his own. Choosing the right role models can help set you on the path to success.

“There is no reason to look only for living models,” Munger said. “The eminent dead are, in the nature of things, some of the best models around