It’s easy to come across hundreds of Warren Buffett quotes in the financial media, since he is considered one of the best stock pickers of all time. His business partner Charlie Munger, on the other hand, doesn’t make the headlines that often. This is a real shame.
Charlie Munger is Warren Buffett’s right-hand man. He’s the vice chairman of Berkshire Hathaway and an amazing investor in his own right. When tens of thousands of people make the annual trip to Omaha, Nebraska for the annual shareholders meeting at Berkshire Hathaway, Buffett is always sitting next to Munger on stage, and both of these gentlemen answer shareholder questions for five hours each year.
Over the years Warren Buffett has given Munger credit by saying that he has made Buffett a better investor. He says that Munger has taught him that “it’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price.”
Between 1962 in 1975, according to ValueWalk.com, Munger’s investments have generated a compound average return of about 20%, which is obviously very impressive.
Here are a few of Munger’s most quotable sayings over the years that can certainly help people get ahead in life and investing.
“I constantly 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, particularly when you have a long road ahead of you.”
For a long time, Munger has recommended that people keep learning and reading all throughout their lives. They should never restrict themselves to just one topic. He has talked about how different disciplines will intersect and inform one another.
“It’s waiting that helps you as an investor, and a lot of people just can’t stand to wait. If you didn’t get the deferred-gratification gene, you’ve got to work very hard to overcome that.”
Patience is a critical and often underappreciated component of becoming a successful investor. You may have the opportunity to double your money in a year if you get lucky, but to earn 10 or even 20 times of your investment, you need to choose your investments wisely and have patience to endure the ups and downs that are inevitable. Investors who possess patience also enjoy the simplest type of investing, as Munger has explained in the past:
“If you buy something because it’s undervalued, then you have to think about selling it when it approaches your calculation of its intrinsic value. That’s hard. But if you buy a few great companies, then you can sit on your ass. That’s a good thing.”
We would all be better off if we would learn from Charlie Munger. Fortunately for us, the majority of his words and thoughts can be found online as well as in books. Better yet, visit the Berkshire Hathaway annual meeting and listen to the man in person.