Checklists are a great way to make more rational investment decisions.
Here's everything you need to know about Charlie Munger's investment checklist 👇🏼
Here's everything you need to know about Charlie Munger's investment checklist 👇🏼
Charlie Munger uses 10 investment principles in his checklist:
▪️ Risk
▪️ Independence
▪️ Preparation
▪️ Intellectual humility
▪️ Analytical rigor
▪️ Allocation
▪️ Patience
▪️ Decisiveness
▪️ Change
▪️ Focus
▪️ Risk
▪️ Independence
▪️ Preparation
▪️ Intellectual humility
▪️ Analytical rigor
▪️ Allocation
▪️ Patience
▪️ Decisiveness
▪️ Change
▪️ Focus
1️⃣ Risk
All investment evaluations should begin by measuring risk, especially reputational.
The definition of true risk is the permanent loss of capital.
All investment evaluations should begin by measuring risk, especially reputational.
The definition of true risk is the permanent loss of capital.
2️⃣ Independence
To make good decisions, you should think independently.
You can't expect to outperform the market when you follow the herd.
To make good decisions, you should think independently.
You can't expect to outperform the market when you follow the herd.
3️⃣ Preperation
The only way to win is to work, work, work and hope to have a few good insights.
The best investors develop into lifelong self-learners.
The only way to win is to work, work, work and hope to have a few good insights.
The best investors develop into lifelong self-learners.
4️⃣ Intellectual humility
Acknowledging what you don't know is the dawning of wisdom.
Always stay withing your circle of competence.
Acknowledging what you don't know is the dawning of wisdom.
Always stay withing your circle of competence.
5️⃣ Analytic rigor
Always use checklists to minimize mistakes.
Be a business analyst, and not a security analyst.
Always use checklists to minimize mistakes.
Be a business analyst, and not a security analyst.
6️⃣ Allocation
Proper allocation is an investors' number one job.
Good ideas are very rare. Invest heavily when the odds are greatly in your favor.
Proper allocation is an investors' number one job.
Good ideas are very rare. Invest heavily when the odds are greatly in your favor.
7️⃣ Patience
Resist the natural human bias to act.
Compound interest is the eighth wonder of the world. Never interrupt it unnecessarily.
Resist the natural human bias to act.
Compound interest is the eighth wonder of the world. Never interrupt it unnecessarily.
8️⃣ Decisiveness
Always be fearful when others are greedy, and greedy when others are fearful.
Invest heavily during market corrections.
Always be fearful when others are greedy, and greedy when others are fearful.
Invest heavily during market corrections.
9️⃣ Change
Our world is changing all the time.
Always evolve and keep learning.
Our world is changing all the time.
Always evolve and keep learning.
🔟 Focus
Keep things simple and always focus on your goals.
Always remember that reputation and integrity are your most. valuable assets.
Keep things simple and always focus on your goals.
Always remember that reputation and integrity are your most. valuable assets.
The end. If you liked this, you'll love our website.
▪️ Each Tuesday we share 5 investment insights
▪️ Each Thursday we publish a deeper investment article
Start your journey here:
qualitycompounding.substack.com
▪️ Each Tuesday we share 5 investment insights
▪️ Each Thursday we publish a deeper investment article
Start your journey here:
qualitycompounding.substack.com
Loading suggestions...