Charlie Munger’s three-word rule that guided Warren Buffett could help you too

A podcaster recently shared his dating experience Charlie Munger and having dinner with the legendary investor and former vice president of Berkshire Hathaway (NYSE:BRK)(NYSE:BRK).

Here is the most valuable advice and key takeaway from that meeting.

What happened: Munger and investment icon Warren Buffett had a long-lasting friendship that continues to influence the success of Berkshire Hathaway. With Munger’s recent passing, his legacy and passion for surrounding himself with exceptional people continues to shape the company. Without their chance meeting, Berkshire Hathaway might have taken a very different path.

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David SenraTHE Founders Podcast host, read the biography of an entrepreneur each week and breaks it down as an episode on the podcast.

For one of the recent podcasts, Senra shared his thoughts on the book “Tao of Charlie Munger: A Compilation of Quotes from Berkshire Hathaway’s Vice President on Life, Business, and Pursuit of Wealth” by David Clark.

In the podcast episode, Senra combines quotes and thoughts from the book with real-life responses he received from a dinner he had with Munger.

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“I had dinner with Charlie Munger. I spent over 3 hours with him. I got to see his library. I could ask him any question I wanted,” Senra. he posted on Twitter.

While Senra shared several quotes from Munger in the book and some he heard from Munger at dinner, he pointed to one that had the biggest impact.

“The most important lesson I learned from him that night was: GO FOR GREAT.”

Senra said that the quote from Munger breaks down into a combination of 4 simple ideas:

• 1. Charlie sees everything through the lens of history. Human nature does not change. The same behaviors are repeated forever.

• 2. Problems from time to time should be expected. This is an inevitable part of life.

• 3. Wise people don’t complain about problems. It prevents them. “Wisdom is prevention.”

• 4. Big business is rare. Great people are also rare. Great people and great businesses produce fewer problems.

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Why it’s important: In the podcast, Senra adds that a large part of people’s lives is searching for their goals, and they often don’t get where they should be until later in life.

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“Your mission in life is to get into a great business (and stay there) and build relationships with great people. By doing that, you’ll prevent most of the problems that are within your control. Go big,” Senra said of those Munger’s four steps.

The podcaster said most people have to start multiple companies to reach their goal, including Munger.

“Munger was 40 years old before he did full-time what he was put on Earth to do.”

Munger became vice chairman of Berkshire Hathaway in 1978 and later became Buffett’s right-hand man. The position came after a meeting between Buffett, Munger and two friends that led the two to connect to discuss stocks.

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Munger had casually worked at Buffett & Son, a grocery store owned by Buffett’s grandfather, when he was a teenager.

With Munger on board, Buffett changed some of his investment principles, including his concerns about diversification. Munger was able to persuade Buffett not to limit himself to the teachings of Benjamin Graham.

“Buy great businesses at fair prices,” Munger told Buffett.

The concept was to buy businesses that were throwing away a lot of money and then use the money to invest and buy other businesses. With Munger helping with the investments, Buffett was persuaded to invest in the Coca cola (NYSE:KO), a decision he may never have made without Munger’s influence.

Going for the great and surrounding yourself with great people has helped Buffett and Berkshire Hathaway tremendously, and is one of the key tips he learned from Munger along the way.

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This story is part of a new series of features on success, Inspire gasoline.

Image created using artificial intelligence by Midjourney.

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This article Charlie Munger’s Three-Word Rule That Guided Warren Buffett Could Help You Originally appeared on Benzinga.com