Friday, January 8, 2010

Charlie Munger on Reading, Thinking, IQs, and Temperament

Here's an interview with Charlie Munger in Kiplinger's from several year ago. It covers some familiar territory.

Excerpts:

What are your work styles like?
We [Warren and I] have certain things in common. We both hate to have too many forward commitments in our schedules. We both insist on a lot of time being available almost every day to just sit and think. That is very uncommon in American business. We read and think. So Warren and I do more reading and thinking and less doing than most people in business. We do that because we like that kind of a life. But we've turned that quirk into a positive outcome for ourselves.

How important is temperament in investing?
A lot of people with high IQs are terrible investors because they've got terrible temperaments. And that is why we say that having a certain kind of temperament is more important than brains. You need to keep raw irrational emotion under control. You need patience and discipline and an ability to take losses and adversity without going crazy. You need an ability to not be driven crazy by extreme success.

Check out the entire interview.

Adam

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