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Read time: 3 mins
Last week, we lost a business icon—Charlie Munger.
Charlie was a renowned investor and philanthropist.
He was Warren Buffett's partner at Berkshire Hathaway.
He was a multi-billionaire.
But what we loved most about him?
His wisdom.
We've been following Charlie for years.
He shared hundreds of gems on business and living a successful life.
In this newsletter, we wanted to share 5 of them.
These are views that have influenced the way we coach our clients to grow their businesses.
Our hope is that they’ll help you in the same way.
And remember, the key to all gems is not simply to learn them, but to apply them!
Let's get into it!
5 LESSONS FROM THE BUSINESS ICON, CHARLIE MUNGER
1. ON PERFORMANCE:
"Show me the incentive, and I will show you the outcome."
People are not complicated.
Your business outcomes are shaped by the incentives you set for your people, customers, and anyone in your circle of influence.
Every category of your business is driven by incentives: Finance, Customer, Operations, People, and Strategy.
Are you clear on your short- and long-term incentives?
When did you last review how effective they are?
2. ON CONTINUOUS IMPROVEMENT:
"Spend each day trying to be a little wiser than you were when you woke up."
Becoming a little wiser every day isn’t just a personal development thing.
Strong, healthy businesses are always learning.
Always getting better.
Always trying to be a little wiser than they were.
Charlie's mantra was to make learning part of the DNA of your business.
Do this, and you'll witness a difference in culture and outcomes.
3. ON SIMPLICITY:
"It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent."
Businesses can be extremely successful if they simply avoid doing stupid things.
Do the ordinary things extraordinarily well and set yourself apart from your competition.
4. ON BALANCE:
"I never allow myself to have an opinion on anything that I don't know the other side's argument better than they do."
It’s impossible to completely avoid making biased decisions.
The key is to aim to make balanced, informed calls as often as possible.
Before any big decision, take Charlie’s advice, and make sure you understand the opposite side of where you're leaning.
5. ON PARTNERSHIPS:
"How to find a good spouse? The best single way is to deserve a good spouse."
Business success is often defined by successful partnerships.
Attract the best network and partners for your business by being the business that deserves the best people.
Here's a good test for this:
Do you reach out to your network because you need something OR because you think they need something?
Different approaches = different outcomes.
Where to from here?
We’ll miss Charlie.
His legacy is huge, impacting numerous people and businesses.
We've learned a lot from him and will continue to apply his timeless gems.
Time to get to work!
Speak soon,
Lynne and Steve
P.S. Give your family and loved ones an extra cuddle - life is precious. We never know how long we have.
TLDR:
- Surround yourself with incredible people (Charlie's wisdom lives on, so we think he should remain one of them).
- Learn through the knowledge of others (we shared 5 quotes but there are so many more - check out the extra resources below 👇).
- The real wisdom comes in the application of knowledge (don't just consume the content, do something about it!)
Extra resources:
This is by far the best summary of anything and everything Charlie Munger, if you want to go down the rabbit hole.
Who is Charlie Munger? Wit and Wisdom From The World's Most Irreverent Billionaire (fs.blog)
We love Shane Parrish and everything he does at FS.