---
type: "Topics"
locale: "en"
url: "https://longbridge.com/en/topics/29339950.md"
description: "&#34;If I knew where I was going to die, I'd never go there.&#34;—Inversion is at the core of Munger's methodology, solving problems by avoiding mistakes rather than pursuing perfection.&#34;To the man with only a hammer, every problem looks like a nail.&#34;—A critique of single-model thinking, emphasizing the importance of multidisciplinary mental models (e.g., mathematics, psychology, physics).Theory of the &#34;Circle of Competence&#34;—&#34;Know your boundaries and compete only within your 'circle of competence.' A skill without defined boundaries isn't a true skill.&#34;&#34;Price is what you pay; value is what you get.&#34;—The essence of investing is finding assets priced far below intrinsic value (margin of safety).&#34;Wait patiently for the right pitch.&#34;—Exercise restraint when opportunities are scarce, and bet heavily only when most confident.Human Nature and Psychology&#34;25 Common Psychological Tendencies&#34;—Such as &#34;bias from incentives,&#34; &#34;herd mentality,&#34; and &#34;avoidance of doubt tendency.&#34; Munger believed understanding these prevents irrational decisions.&#34;Envy and resentment are the dumbest sins because they bring no joy.&#34;—Emotional management is the foundation of rational decision-making.&#34;If you want to persuade someone, appeal to interest rather than reason.&#34;—Human nature is driven more by benefits than logic.&#34;Wake up each day striving to be slightly wiser than yesterday.&#34;—Lifelong learning is central to Munger's philosophy.&#34;Stay rational even when others are going crazy.&#34;—Maintain independent thinking amid collective euphoria or panic.&#34;The only way to find a good spouse is to deserve one.&#34;—Self-improvement is the prerequisite for attracting quality relationships.&#34;Make friends with the eminent dead (through reading), and you'll live a better life.&#34;—Draw wisdom from history and classics.&#34;Economic moat&#34;—Invest in businesses with durable competitive advantages (e.g., brand, cost advantage, monopoly).&#34;Compound interest is the eighth wonder of the world.&#34;—The long-term compounding effect is key to wealth growth.&#34;All intelligent investing is value investing.&#34;—The essence of investing is calculating intrinsic value, not predicting market fluctuations.&#34;If things seem too smooth, you might be missing something.&#34;—Beware of over-optimism; always check for hidden risks.&#34;Avoid toxic people or businesses.&#34;—Stay away from unethical or unreliable partners.&#34;I never allow myself to 'think like a genius in a bull market or feel like a depressive in a bear market.'&#34;—Refuse to be hijacked by market sentiment.&#34;My longevity secret: lower expectations, keep a sense of humor, and surround yourself with loved ones.&#34;—The ultimate wisdom of simple living and a good mindset.&#34;Poor Charlie's Almanack&#34;"
datetime: "2025-05-05T04:14:44.000Z"
locales:
  - [en](https://longbridge.com/en/topics/29339950.md)
  - [zh-CN](https://longbridge.com/zh-CN/topics/29339950.md)
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author: "[戴某 DEMO](https://longbridge.com/en/profiles/993.md)"
---

# &#34;If I knew where I was going to die, I'd never…


## Comments (1)

- **人送外号川渝美食家 · 2025-05-06T11:00:23.000Z**: Reviewing the past helps understand the new, worth remembering a thousand times