Life lessons from Benjamin Franklin and Charlie Munger
A Personal Journey Towards Wisdom and Success
As a long term investor, I feel it is my responsibility to continuously improve my knowledge, skills, and wisdom in order to have better judgement and ensure the long-term success of my investments. In pursuit of this goal, I have recently been delving again into the teachings of two eminent individuals, Benjamin Franklin and Charlie Munger. The wisdom they impart has been a tremendous source of inspiration through the years, and I am eager to share with you some of the key lessons I have gleaned from their insights. My hope is that you, too, will find these principles to be as valuable and transformative as I have.
Both Benjamin Franklin and Charlie Munger emphasize the importance of nurturing a lifelong passion for learning and intellectual curiosity. They argue that continuous self-improvement and the pursuit of knowledge are a moral duty and critical in achieving success and fulfilment in all aspects of life.
In the context of our personal and professional lives, we should strive to remain well-informed and curious, always seeking to broaden our horizons and deepen our understanding of the world. This may involve reading extensively, engaging in thought-provoking discussions, or attending lectures and seminars on various subjects. By fostering a culture of learning, we can continually sharpen our skills, improve our decision-making abilities, and stay abreast of new developments in our fields of interest.
To put this principle into practice, consider dedicating time each day to reading books, articles, and research papers across a wide array of disciplines, not just finance. This multidisciplinary approach will help you build a diverse knowledge base, allowing you to draw connections between seemingly unrelated fields and gain unique insights into market trends and investment opportunities. Furthermore, make it a priority to engage in thoughtful discussions with fellow investors, mentors, and industry experts, as these interactions can further broaden your perspective and deepen your understanding.
Patience and discipline are essential qualities that can help us navigate the many challenges and uncertainties we face throughout our lives. By adopting a long-term perspective, we can resist the urge to make impulsive decisions based on fleeting emotions or short-term pressures. Instead, we can focus on what truly matters and make choices that are grounded in sound principles and a clear vision of our long-term goals.
For example, when faced with a difficult decision or an unexpected setback, we can remind ourselves of our core values and overarching objectives. This approach can help us maintain our composure and persevere, even when the going gets tough.
To cultivate patience and discipline, setting clear, long-term investment goals and developing a well-defined strategy to achieve them can be helpful. By establishing a solid plan, you can avoid the temptation to chase after fleeting trends or make impulsive decisions in response to temporary market swings. Moreover, regularly reviewing your progress towards your goals will help you stay focused and committed to your long-term strategy, even during periods of heightened market volatility.
Benjamin Franklin and Charlie Munger both recognized the importance of surrounding oneself with wise and knowledgeable individuals. By forging relationships with experienced investors, mentors, and advisors, we can tap into a wealth of wisdom that enables us to make better-informed decisions and avoid potential pitfalls.
Surround yourself with individuals who uplift and inspire you. Friendship, love, and familial bonds are essential to our well-being and personal growth. Invest time and energy into nurturing these connections, for they are the foundation upon which a happy life is built. I have learned to seek out wise mentors and surround myself with people who inspire and challenge me. The individuals with whom you associate have a significant impact on your personal and professional growth.
Our success is not solely measured by financial returns but also by the integrity with which we conduct ourselves. Our reputation is one of our most valuable assets, and it is built upon the foundation of honesty, trustworthiness, and moral character. I think it’s important to strive to do the right thing, even when it is difficult or unpopular. One of Charlie Mungers saying has had an enormous impact on my life. It is actually written above my desk. "The best way to get what you want in life is to deserve what you want."
Charlie Munger once said that it is of paramount importance to avoid adopting a victim mentality when facing life's inevitable challenges and setbacks. He says that instead of wallowing in self-pity or blaming external circumstances, one should adopt a proactive attitude and take responsibility for one's actions and decisions. This mindset empowers you to tackle life's troubles head-on and seek out solutions, rather than merely lamenting your misfortunes. By cultivating resilience and a problem-solving approach, you not only enhance your ability to navigate adversity but also develop the inner strength and resourcefulness necessary for long-term success and fulfillment. Remember, life will always present obstacles, but it is our response to those obstacles that ultimately determines the trajectory of our lives.
During the pandemic, I had the time and solitude to reflect on life and the values I admire. I took this opportunity to review the traits I admire in people, as well as the traits I dislike, and compared these against an honest view of myself. Over the course of multiple lockdowns and extensive reading, I summarised what I thought my guiding values would be into a list that, I must say, I feel apprehensive about sharing publicly:
Deserve what you want from life: Strive to become the kind of person who truly deserves the things you desire. Work diligently, act with integrity, and treat others with kindness and respect. By cultivating these qualities, you will not only increase your chances of achieving your goals but also enhance your overall sense of self-worth and satisfaction.
Invert your thinking: Instead of focusing solely on the actions necessary to achieve your goals, consider the behaviors you should avoid. By identifying potential pitfalls, you can circumvent obstacles and better position yourself for success.
Learn from others' mistakes: By observing and learning from the missteps of others, you can avoid repeating the same errors and gain valuable insights without paying the price yourself.
Embrace your inner scorecard: Evaluate your success based on your personal values and standards, rather than comparing yourself to others or seeking external validation.
Be ethical, rational, and honest: These qualities are not only morally sound but also lead to better decision-making and stronger relationships in all areas of life.
Avoid the three L's: Lust, liquor, and leverage can lead to personal and financial ruin. Exercise caution and self-discipline when faced with these temptations.
Read voraciously: Continually expand your knowledge and understanding by reading widely and learning from diverse sources.
Live below your means: Find happiness in frugality and invest the surplus wisely for long-term financial security.
Eschew destructive emotions: Envy, resentment, hate, and self-pity are counterproductive and harmful. Cultivate positive attitudes and focus on self-improvement instead.
Manage your expectations: Recognize that you do not need to be at the top of the world to be happy and successful. Embrace humility and contentment.
Take the high road: Choose to act with integrity and kindness, even when it is difficult or unpopular. This path is often less crowded and ultimately more rewarding.
Treat people right and avoid those who don't: Foster healthy relationships and distance yourself from individuals who exhibit toxic behaviors.
Learn from others' qualities: Observe the traits you admire or dislike in others, and strive to incorporate or avoid these qualities in your own behavior.
Honor your commitments: Uphold your promises and be reliable in all aspects of life.
Act with transparency: Conduct yourself in a manner that would make you proud if everyone you admire and love were to know about it.
Value your name and reputation: Your integrity and character are your most treasured possessions. Protect them fiercely.
Embrace Granny's Rule: Tackle the most difficult tasks first, as overcoming challenges early on can lead to a more productive and satisfying day.
Measure success by the love of your family: The care and support of your loved ones are the truest indicators of a life well-lived.
Cherish friendships: Remember that no one is a failure who has friends.
Manage your expectations for happiness: Happiness often stems from aligning our expectations with reality and finding contentment in the present moment.
Show up and be present: Engage fully in life's experiences and opportunities, as simply showing up can make a significant difference.
Practice patience and discipline: Approach life's challenges with perseverance and self-control, recognising that true success is often achieved through sustained effort over time.
I have found that incorporating these values into my daily life has helped me cultivate a greater sense of fulfilment, happiness, and success. I hope you find these principles somewhat interesting, and I look forward to hearing your thoughts. Let's continue our journey towards personal growth and achievement together.
Warm regards,
Oliver