Wednesday, 7 September 2016

Charlie Munger: Investment advice

  1. While carrying out any investment assessment, first calculate risk.
  2. Make decisions on your own and be self-determining. After listing risks, you make decisions based on involved risks. Whatever you decide, you should be be self-determining regarding your decisions and actions.
  3. Plan to encompass a few imminent, possible complications.
  4. Being humble and admitting where you are deficient the first step towards perception. Committing mistakes is human, and admitting your mistakes is part of being humble.
  5. In order to reduce errors and mistakes, investigate thoroughly. Accepting mistakes is good but nothing is as good as avoiding mistakes.
  6. While making any investment capital is assigned, allocating capital and assets intelligently is a must.
  7. Oppose the normal inclination to do something and have patience.
  8. In appropriate situations, be determined and confident.
  9. Accept change. Change is a common phenomenon of any business and investment so recognize, accept, and acknowledge it instead of fighting it tooth and nail.
  10. Pay attention. When you lack attention and concentration, you've taken your first step towards failure.

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