To meaningfully improve outcomes and to make innovation more rewarding, it’s important to know “ How to Think “.
An example of this is Warren Buffet referring to Charlie Munger as the smartest man he knows – his partner at Berkshire Hathaway. Together they’ve built a $1 Trillion empire. His speeches are a masterclass in decision making, rationality, and success.
Here are Charlie’s 10 best insights to help you win at business and in life :
1. “ Knowing what you don’t know is more useful than being brilliant ”
Most people spend their lives wrestling with the consequences of poor decisions. But the truth is it’s much easier to avoid stupidity than trying to be smart !
> Admit you know little or nothing – and remove ego from the equation.
2. “ A majority of life’s errors are caused by forgetting what one is really trying to do ”
We set goals and pursue them – then get distracted.
To achieve something meaningful, you need to constantly “ correct course “.
> To do this – Set a north star and keep it front of mind.
3. “ Mimicking the herd invites regression to the mean ”
If you do the same as everyone else, you’ll get the same results !
With most people being – Unhappy , Unfulfilled , Unmotivated – recognize following society’s standards traps you in them.
> Be bold. Go against the grain. Be willing to try.
4. “ To get what you want – You have to deserve what you want ”
You can’t control results, but you can control your – Character , Work Ethic , Willingness To Learn
> Because of this – Recognize it’s about earning what you want.
5. “ The fundamental algorithm of life – Repeat What Works ”
It’s easy to overcomplicate things.
With everything you do providing feedback, smart people listen and follow up accordingly.
When something goes poorly – do less of it.
> When something goes well – do much more of it.
6. “ Those who keep learning – Keep Rising ”
Unfortunately, most people stop learning at 18 !
Recognize knowledge is an asset that compounds over time.
The more you know, the better you think, you make better choices, and achieve results.
> Schedule time to learn new things and develop your thinking.
7. “ You don’t have to be brilliant – Only Wiser Than Others ”
Buffet and Munger’s approach – Rationality and Patience.
> Be methodical, know how to test, and when to change – for impressive results.
8. “ The best thing a person can do is help another person know more ”
The best way to live your life is in service to others – especially those also interested in learning.
> Be knowledgeable and innovative. Share your ideas and insights to help people win.
9. “ Make time almost every day to Sit and Think ”
We live at a time of constant input where many people want quick gratification, be efficient, maximize productivity, etc.
But life is cause and effect.
> Because good look ahead, decision making, and the ability to act are critical to success – taking time to become more aware and thinking things through is a priority.
10. “ Know the big ideas in the big disciplines and use them routinely ”
Principles from the sciences (Maths , Physics , Biology , Philosophy , Engineering) and lessons learned in life – have a profound impact.
And realize “ How you look at a situation “ and “ The desire to make something better “ hugely influence the outcome.
> Study mental models. Build a toolkit. Treat your mind like your greatest asset.
Dec 1, 2022 – CAIL Innovation commentary www.cail.com/BI info@cail.com 905-940-9000