Charlie Munger

Never Interrupt Compounding. 1924 to 2023.

Who he was

Charlie Munger was vice chairman of Berkshire Hathaway and Warren Buffett's partner for more than 40 years. He trained as a lawyer before turning to investing.

He died in 2023 at the age of 99.

The compounding lesson

Munger said the first rule of compounding is never to interrupt it unnecessarily. Selling a good business, paying high fees and chasing fads all interrupt it.

He pushed Buffett toward buying great businesses at fair prices instead of fair businesses at great prices. Great businesses compound on their own.

How he thought

He borrowed ideas from psychology, biology and mathematics and called them mental models. He was blunt about human error, his own included.

His advice on getting rich was simple. Spend less than you earn, invest the difference, and wait.

What to copy

Do fewer things and do them for longer. Avoid anything that can take you back to zero.

Patience is not a personality trait here. It is the strategy.