📖Charlie Munger
Sit on Your Ass Investing
Inactivity is often the wisest investment strategy.
Sit on your ass investing. You're paying less to brokers, you're listening to less nonsense. And if it works, the tax system gives you an extra one, two, or three percent per annum.
🏠 Everyday Analogy
📖 Core Interpretation
Charlie Munger advocates a repeatable process: define criteria, execute consistently, and review decisions against evidence. Process quality drives outcome consistency.
💎 Key Insight：Doing less reduces costs and improves returns.
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❓ Why It Matters
Without process, there is no reliable feedback loop. Structured execution and review improve decision quality over time.
🎯 How to Practice
Run a decision loop of research, thesis, execution, and post-mortem; document assumptions and update playbooks with evidence, not hindsight bias.
⚠️ Common Pitfalls
Having opinions without execution criteria
Reviewing outcomes but not decisions
Abandoning rules during volatility spikes
📚 Case Studies
1
Dot-Com Bubble Caution (1999)
Munger avoided overvalued tech IPOs despite fear of missing out, preferring businesses he understood with durable moats and sensible prices.
✨ Outcome：Lost short-term gains as tech soared, but avoided massive losses when the bubble burst in 2000–2002.
2
Berkshire’s Crisis-Era Discipline (2008)
During the financial crisis, plunging stock prices triggered widespread panic. Munger and Buffett resisted selling quality holdings at depressed prices, focusing on intrinsic value.
✨ Outcome：Avoided crystallizing heavy losses and later benefited as markets and core holdings recovered strongly.
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