Tuesday's Rule #18

Mungerisms

Welcome to this week's edition of Tuesday's Rule. A weekly breakdown of a "life rule" I've found interesting or valuable.

Investors gathered in Omaha this Saturday for the annual Berkshire Hathaway shareholder meeting, the first since Charlie Munger passed away, aged 99, in November last year.

There are few people whose wisdom has been more widely observed, documented and distributed than Charlie. 

Munger was widely known as Warren Buffet's intellectual and investing partner as vice chairman of Berkshire Hathaway, a mammoth investment firm that still ranks among the top 10 companies in the S&P 500.

But far from just being Warren Buffet's right-hand man, the wisdom of Mr Munger more than stood on its own two feet.

Of Charlie, Warren Buffet said:

Charlie can see the essence of anything. His mind cuts through the fat and gets right to the muscle and bone.

The incisive insights that he was famous for were delivered in many forums, but two mediums were particularly renowned. 

Charlie's unofficial biography—Poor Charlie's Almanack—is one of the most famous and influential books ever written. It's also extremely rare, with original copies going for hundreds of dollars on eBay. 

The book is a compilation of speeches, essays, and philosophies, structured around a series of talks Munger has given. Through these talks, Munger introduces what he calls a "latticework of mental models," which are frameworks for thinking about multiple disciplines. 

With physical copies being so rare, Stripe have produced a digital version and made it available for free, here

Then, there were the annual meetings. Warren Buffett and Charlie Munger were renowned for hosting the Berkshire Hathaway Shareholders Meeting, often referred to as "Woodstock for Capitalists." 

These meetings, held in Omaha, Nebraska, draw tens of thousands of attendees from around the world. The events featured a weekend of activities, but the centrepiece was the Q&A session, during which Buffett and Munger answered questions from shareholders for several hours, (despite being well into their 90s) drinking cans of Coke and Dr Pepper and eating chips.

These meetings were the source of some of Charlie's sharpest retorts, with some highlights in this short YouTube video:

The first clip in this video is what inspired this weeks rule…

The Best Way To Get What You Want, Is To Deserve It

The full quote was - “the best way to get what you want in life is to deserve what you want. How could it be any other way? It’s not crazy enough so the world is looking for a load of undeserving people to reward.”

Warren Buffet wasn’t wrong when he spoke of Mungers ability to cut through the fat and get right to the bone.

This is the type of rule that’s so crisp and obvious that perhaps you really don’t need me to add anything much further to it.

But this could be the one rule to rule them all.

There is perhaps no other ethos that is better for us to have.

The idea of deserving what you want being the best way to get it, really does cut through almost all “life advice”.

The very basic, and logical core of the rule reflects the principle that success and desirable outcomes in life generally accrue to individuals who put in the effort and merit their rewards through their actions, decisions and behaviours.

It’s understandable and applicable to anything, not just financial success and rewards.

Working toward a promotion at work? The only reliable way is to be the best candidate.

Want to be in good shape? The only reliable way is to work out enough to earn it.

Desire a perfect spouse? The only reliable way is to be one in return.

All at once, this rule is motivating, grounding, and thought-provoking and simple.

It might be my favourite so far.

And if you have read all the way to the bottom, I hope to have been deserving of your attention. I certainly appreciate it.

See you next week.