Charles Thomas Munger (January 1, 1924 – November 28, 2023) was an American businessman, investor, and philanthropist. He served as vice chairman of Berkshire Hathaway and was Warren Buffett's closest partner for over five decades. Munger was renowned for his multidisciplinary approach to investing, advocating for the use of mental models from various fields including psychology, economics, physics, and biology....
"All I want to know is where I'm going to die, so I'll never go there. It is remarkable how much long-term advantage people have gotten by trying to be consistently not stupid."
Avoiding disaster is more important than chasing success.
Read Full Analysis →"The idea of excessive diversification is madness."
Excessive diversification is a sign of ignorance, not prudence.
Read Full Analysis →"Losses hurt about twice as much as gains feel good."
The pain of losing money is felt twice as intensely as the pleasure of gaining the same amount.
Read Full Analysis →Charlie Munger has 3 key principles on risk management. The most important one is "Avoid Catastrophe First" — All I want to know is where I'm going to die, so I'll never go there.
Charlie Munger applies risk management through several key principles including "Avoid Catastrophe First" and "Concentration vs Diversification". These principles guide practical investment decisions and have been tested across decades of market cycles.
Charlie Munger's approach to risk management is distinguished by a focus on long-term thinking and fundamental analysis. With 3 specific principles in this area, Charlie Munger provides a comprehensive framework that investors at any level can study and apply to improve their decision-making.
